The Renault-Nissan Alliance has announced it is pouring $160 million into the Republic of Korea for production of next generation vehicles via its Renault Samsung Motors subsidiary.
These will include the upcoming iteration of the Nissan Rogue crossover-utility and a zero emission version of the Renault SM3 compact car, based on the Fluence Z.E., which is being partly financed by the ROK Government.
The move comes as Renault continues to expand its presence outside Europe in an effort to strengthen its position, while Nissan continues to look at moving more production away from Japan in an effort to reduce the impact of a rising yen on exports.
In South Korea, RSM currently sells the conventional SM3 as well as the SM5 midsize and SM7 large sedans along with the QM5 SUV (known as Koleos in other markets). However, according to Renault-Nissan Alliance CEO and Chairman Carlos Ghosn, adding additional production to Korea shows “a commitment across the Alliance to helping RSM achieve its targets for cost competitiveness and growth.”
The introduction of a Korean built zero emissions vehicle will likely further help the Alliance achieve economies of scale on such vehicles, since both automakers are taking an active role in pushing EV technology closer to the mainstream and Nissan has already put in place plans to expand electric car production; notably by setting up Leaf assembly in the U.S.