On the 18th, Renault Korea signed a memorandum of understanding with Busan city at the Busan City Hall, focusing on the investment plan for future vehicle production facilities at the Busan plant.
The signing ceremony of the investment MOU between Renault Korea and Busan was attended by Stéphane Deblaise, President of Renault Korea, and Park Hyung-jun, Mayor of Busan, among others. On this day, Renault Korea announced plans to invest 118 billion won over the next three years for equipment replacement to produce hybrid and electric vehicles at the Busan factory and to hire 200 new employees. Additionally, the city of Busan promised administrative and financial support to ensure that the investment process for Renault Korea’s future vehicle production facilities proceeds smoothly.
Stéphane Deblaise, President of Renault Korea, stated, “Renault Korea plans to invest 700 billion won in the Aurora 1 and 2 projects, which are under development as advanced hybrid models.” He also mentioned, “Once development and production of next-generation electric vehicle models are confirmed after the Aurora 1 and 2 projects, total investments are expected to exceed 1.5 trillion won by 2027,” while requesting comprehensive support from the city of Busan to realize these plans. The economic impact is analyzed to include direct production inducement effects of 12 trillion won, indirect production inducement effects of 30 trillion won, and indirect employment effects of 90,000 jobs.
The first future vehicle project, which Renault Korea plans to unveil in the second half of this year under the development code name Aurora 1, will be a hybrid mid-size SUV, introduced as a new model rather than a successor to existing vehicles from Renault Korea. Together with this, Renault Korea has been selected as one of five global hubs for targeting global markets outside Europe under Renault Group’s ‘Renault Brand International Game Plan’ strategy, responsible for the development and production of Renault Group’s high-end mid-size and large vehicles. Production of the Swedish electric vehicle brand Polestar’s ‘Polestar 4’ is also scheduled to begin at the Busan plant in the second half of 2025.
Meanwhile, Renault Korea had previously signed a public-private-academic agreement with Busan city and local institutions in May last year to establish a future vehicle industry ecosystem in Busan. Through this agreement, Renault Korea will establish an ‘Eco Cluster Center’ within the Busan plant and actively collaborate with local universities, research institutions, and auto parts companies, making efforts for regional coexistence and recruitment of local talents.
Lee Sang-jin daedusj@autodiary.kr