Invest KOREA

An executive of France's Renault Group said Wednesday that its South Korean unit will expand its car line up in coming years as part of its efforts to widen business in the country and overcome weakening demand.

Carlos Tavares, chief operating officer of the French carmaker, said in a Seoul press conference that Renault Samsung Motors Co. will offer a wider portfolio of vehicles to South Korean customers, including a new small crossover car next year.

He said that the extension of its line up for the South Korean market reaffirms Renault's long term involvement in the country.

Renault Samsung, the country's fourth largest carmaker, is selling four models in South Korea -- SM7, SM5, SM3 and QM5.

Recently it has been struggling in the domestic automobile market, experiencing a 29 percent plunge in sales on-year with 70,550 units in the first five months of this year. In May it sold 4,665 cars, closely followed by Ssangyong Motor Co. with 4,104 units. Market leader Hyundai Motor Co. sold 58,050 units in the same month.

There has been growing speculation that Renault may sell its South Korean unit and pull out of the market.

"I confirm the long term involvement of Renault Group in Korea through Renault Samsung and I deny again recent groundless rumors about Renault Samsung being sold-out," Tavares said.

The Renault executive said that Renault Samsung will continue to play an important role in undertaking research and development of upper segment cars and sports utility vehicles for Renault Group.

  

Carlos Tavares, chief operating officer of Renault Group, speaks at a Seoul press conference on June 27. (Yonhap)

Source Text

Source: Yonhap News (June 27, 2012)