Renault Increases Stake in Samsung Motors to 80%
29 December 2005
Reuters. Renault has purchased an additional 10% interest in South Korea’s Renault Samsung Motors (RSM) for 55 billion won ($54.3 million). The exercise of these options brings Renault’s stake in the Korean company to 80.1%. Samsung Group owns the remaining 19.9%.
Late last month, Renault Chairman Carlos Ghosn announced that RSM will begin to export the compact SM3 model (earlier post) under the Nissan brand beginning in 2006. Ghosn is also the chairman of Nissan.
Renault Samsung sold 85,098 cars last year, which accounted for 9.3% of the South Korean auto market. As of October 2005, Renault Samsung has sold about 100,000 cars, marking a 42.9% increase compared with the same period last year.
RSM will begin producing about 30,000 Nissan-branded SM3s annually beginning in 2006, according to Ghosn.
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