Chinese billionaire Li Shufu is expanding carmaker Geely into Latin America through a partnership with Renault, underpinning the nation’s drive to build sales in friendly global markets as tariffs block growth in the US and Europe.
Li, through his private investment holding firm Zhejiang Geely Holdings Group, signed a framework agreement with the French carmaker on Monday to produce cars in Brazil, according to a statement on Tuesday.
Zhejiang Geely and Renault agreed to “expand their strategic cooperation in the development and production of zero- and low-emission vehicles”, according to the statement. Under the deal, Zhejiang Geely will invest in and become a minority stakeholder in Renault, gaining access to “localised production, service network and channel resources”.
Chinese carmakers are pivoting away from the US and Europe amid punitive tariffs. The US raised tariffs on Chinese electric vehicles to 100 per cent from 25 per cent last year and President Donald Trump has threatened to impose more duties on Chinese goods. The European Union enforced new import tariffs of up to 45 per cent on electric vehicles produced in China in October.
Two “advanced production facilities” in Renault Group’s Ayrton Senna Complex in São José dos Pinhais, in the state of Paraná, would produce “all-new vehicles” in addition to the current Renault line-up, Zhejiang Geely said.
Meanwhile, Renault would distribute Geely’s portfolio of zero- and low-emission vehicles in Brazil, allowing the Chinese company to enjoy Renault’s commercial expertise and accelerating its expansion into South America’s main market, the statement said.
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Publish date : 2025-02-17 15:45:00
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