Nam Hyun-woo has worked as a staff writer at The Korea Times since 2013, mostly covering business and politics. He currently belongs to the Business Desk where he covers topics such as emerging tech, AI, ICT and Korea's chaebol community. Prior to joining the team, he was the paper's correspondent for the presidential office of Korea during the Yoon Suk Yeol and Moon Jae-in administrations.
Renault to produce Twizy EV at Busan plant
Renault's Twizy micro electric vehicle / Courtesy of Renault Samsung
By Nam Hyun-woo
Micro EV expected to invigorate Renault Samsung's plant
By Nam Hyun-woo
Renault Samsung will produce the Twizy electric vehicle (EV) at its factory in Busan for the next five years, the Korean unit of French auto giant Renault Group said Tuesday.
The company said it signed a memorandum of understanding (MOU) with Busan City Government and DongshinMotech (DST), one of Renault Samsung's parts suppliers, and agreed to have DST take charge of manufacturing the micro EV.
Currently, the Twizy is assembled in a Renault factory in Spain, and imported to Korea. Renault Samsung has been seeking to manufacture the EV to maintain assembly lines after production for the Nissan Rogue expires in September next year.
Following the MOU, Renault Samsung will bring facilities for making the Twizy from Spain and install them in its Busan plant, a Renault Samsung official said. The plant will be capable of producing up to 5,000 Twizys a year.
DST, which does not have a plant in Busan currently, will run the facility from September next year, with the goal of producing 15,000 Twizys in the next five years for the domestic, European and Southeast Asian markets.
“The successful hosting of Twizy manufacturing will also contribute to the government's efforts to improve rules and set up early stage market infrastructure,” Renault Samsung CEO Dominique Signora said in a statement.
“Korea Post's introduction of micro EV also played a significant role in Twizy's arrival in Busan,” he said. The state-run postal service plans to buy 10,000 micro EVs, including the Twizy, for its delivery service.
DST was established in 1995 as an auto parts company. It currently focuses on automobile chassis and battery pack cases for EVs.
“This is the first cooperation between the government, a midsize company and a foreign automobile maker,” DST said in a statement. “And it will also be a model case for overcoming difficulties faced by domestic auto parts makers through cooperation.”
Renault Samsung has been paying keen attention to its headquarters decision over allocating models to its global manufacturing bases. Since the volume of the Rogue accounted for nearly half of the total output of the Busan plant, the scheduled expiration was expected to drag down exports.
Renault Samsung's exports for November declined 41.6 percent from a year earlier, as the overseas shipments of the Rogue declined 30.7 percent.
The Renault Samsung official said the company is looking forward to producing more models in Korea, including new SUVs after 2020.