Geely bought a 34% stake in Renault’s operations in South Korea last year with an investment of approximately $ 190 million.
Renault and Polestar will produce electric vehicles in South Korea to avoid customs duty.
Polestar, which separated from Volvo and turned into an independent EV brand, pays 2.5%+25% customs duty when importing its vehicles produced in China to the USA. In order to get rid of this tax, the company signed a cooperation agreement with Renault.
Geely bought a 34% stake in Renault’s operations in South Korea with an investment of approximately $ 190 million last year. Under this partnership, the Polestar 4 model will be produced at Renault’s South Korean plant in 2025. Geely also owns Polestar.
The factory in Busan, previously known as Renault Samsung Motors, has an annual production capacity of 300,000 vehicles. The cooperation will also allow Polestar to get rid of the tax burden brought by Chinese production. The cooperation will also increase the rapprochement of the Geely-Renault partnership.
The Polestar 4 offers 544 horsepower with dual engines, a 94 kWh battery, 560 km range, and 200 kW DC charging speed. The vehicle will be launched first in China in December and then in the US with customs duty. The starting price of 60 thousand dollars is expected to fall below 50 thousand dollars in 2025.