Renault Samsung Motors
Encyclopedia
Renault Samsung Motors is a South Korea
n automobile manufacturer. It was first established as Samsung Motors in 1994 and started selling cars in 1998, just before South Korea
was hit by the Asian financial crisis. Negotiations with Renault
started in December 1998 and in September 2000 Renault
bought a 70% stake for $512 million.
's Chairman Kun Hee Lee recognized the automobile industry as the culmination of several other industries. For the Samsung group this would allow to leverage resources and technologies from the entire group including Samsung Electrics and Samsung Electronics. Unfortunately for Samsung shortly after Samsung Motors was established the Asian financial crisis hit. Samsung divested itself of SMI as well as other non-core subsidiaries. SMI was put up for sale, with Daewoo Motors
being one of the first interested companies but as the crisis deepened was itself bought by GM
. Hyundai Motors was also considered as a possible buyer, but corporate politics and strife between the Samsung Group and the Hyundai Group made this impossible.
Coupled with his personal affection for cars, Mr. Lee's dream of building SMI as a global force started out with technical assistance from Nissan, a company which at the time of SMI's early stages was in dire financial straits. SMI's affiliation with Nissan could have been one of the reasons for Renault
buying a major share of the company, as Renault had become a major shareholder of Nissan by then. One of the very early planners for SMI has stated that technical affiliations for SMI were initially considered with either Volkswagen
or Honda
. However, its financial situation had forced Nissan to disclose its technology and engineering expertise to SMI. Also, Nissan has supplied SMI with its engines, one of them being Nissan's famed V6 engines the VQ23DE, currently replaced by the VQ35DE.
Since 1999 Renault Samsung Motors has been selling cars in Chile
when the company introduced the SQ5 (then SM5). As 2011 Chile is the only country that RSM sold its cars under Renault Samsung Motors and not as rebadged Renaults.
s countries such as China, Russia, and also parts of Europe.
As Renault does not have any R&D centers and has only a few factories in Asia, RSM will spearhead the Renault's expansion efforts into the rapidly developing Asian market. Also, Renault is continuing the use of 'Samsung' name until 2020 under a license agreement with the Samsung group.
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
n automobile manufacturer. It was first established as Samsung Motors in 1994 and started selling cars in 1998, just before South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
was hit by the Asian financial crisis. Negotiations with Renault
Renault
Renault S.A. is a French automaker producing cars, vans, and in the past, autorail vehicles, trucks, tractors, vans and also buses/coaches. Its alliance with Nissan makes it the world's third largest automaker...
started in December 1998 and in September 2000 Renault
Renault
Renault S.A. is a French automaker producing cars, vans, and in the past, autorail vehicles, trucks, tractors, vans and also buses/coaches. Its alliance with Nissan makes it the world's third largest automaker...
bought a 70% stake for $512 million.
History
Samsung Motors (also known as SMI) was created after the SamsungSamsung
The Samsung Group is a South Korean multinational conglomerate corporation headquartered in Samsung Town, Seoul, South Korea...
's Chairman Kun Hee Lee recognized the automobile industry as the culmination of several other industries. For the Samsung group this would allow to leverage resources and technologies from the entire group including Samsung Electrics and Samsung Electronics. Unfortunately for Samsung shortly after Samsung Motors was established the Asian financial crisis hit. Samsung divested itself of SMI as well as other non-core subsidiaries. SMI was put up for sale, with Daewoo Motors
Daewoo Motors
The Daewoo Motors was a South Korean car maker established in 1978, part of the Daewoo Group. The company sold most of its assets in 2001 to General Motors after running into financial trouble. The commercial vehicles division was acquired by Tata Motors in 2004.-History:The company was first...
being one of the first interested companies but as the crisis deepened was itself bought by GM
General Motors
General Motors Company , commonly known as GM, formerly incorporated as General Motors Corporation, is an American multinational automotive corporation headquartered in Detroit, Michigan and the world's second-largest automaker in 2010...
. Hyundai Motors was also considered as a possible buyer, but corporate politics and strife between the Samsung Group and the Hyundai Group made this impossible.
Renault
Renault S.A. is a French automaker producing cars, vans, and in the past, autorail vehicles, trucks, tractors, vans and also buses/coaches. Its alliance with Nissan makes it the world's third largest automaker...
buying a major share of the company, as Renault had become a major shareholder of Nissan by then. One of the very early planners for SMI has stated that technical affiliations for SMI were initially considered with either Volkswagen
Volkswagen
Volkswagen is a German automobile manufacturer and is the original and biggest-selling marque of the Volkswagen Group, which now also owns the Audi, Bentley, Bugatti, Lamborghini, SEAT, and Škoda marques and the truck manufacturer Scania.Volkswagen means "people's car" in German, where it is...
or Honda
Honda
is a Japanese public multinational corporation primarily known as a manufacturer of automobiles and motorcycles.Honda has been the world's largest motorcycle manufacturer since 1959, as well as the world's largest manufacturer of internal combustion engines measured by volume, producing more than...
. However, its financial situation had forced Nissan to disclose its technology and engineering expertise to SMI. Also, Nissan has supplied SMI with its engines, one of them being Nissan's famed V6 engines the VQ23DE, currently replaced by the VQ35DE.
Since 1999 Renault Samsung Motors has been selling cars in Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
when the company introduced the SQ5 (then SM5). As 2011 Chile is the only country that RSM sold its cars under Renault Samsung Motors and not as rebadged Renaults.
Present
Today, Renault Samsung Motors (RSM) maintains a good position within the Korean automotive market, with its SM5 vehicle continuing to hold its ground against competitors. Also, RSM is in the phase of changing its products from a Nissan based architecture to a Renault based one. For example, the next generation of Megane will take over the Nissan Sylphy as the base for SM3. Also, according to the development trend of the Renault-Nissan Alliance, gasoline engines will be continued to be provided by Nissan, whereas diesel engines will be provided by Renault. In addition, QM5(a cross over vehicle; code name: H45) was co-developed with Nissan (who is also using the QM5 as the basis for its next Xtrail, code name P32M). It is being sold in Korea, Europe, China, Mexico and South America, and more new vehicles are planned in the future. This will increase the current company production capacity of 125,000~130,000 units to around 250,000 by 2010, as much of the increased production will target BRICBRIC
In economics, BRIC is a grouping acronym that refers to the countries of Brazil, Russia, India and China, which are all deemed to be at a similar stage of newly advanced economic development...
s countries such as China, Russia, and also parts of Europe.
As Renault does not have any R&D centers and has only a few factories in Asia, RSM will spearhead the Renault's expansion efforts into the rapidly developing Asian market. Also, Renault is continuing the use of 'Samsung' name until 2020 under a license agreement with the Samsung group.
Model lineup
- QM5Renault KoleosThe Renault Koleos is a compact SUV which was first presented as a concept car at the 2006 Mondial de l'Automobile in Paris, with first concept demonstrated on 2000 Geneva Motorshow. The Koleos was designed by Renault and developed by Nissan. It is manufactured by Renault Samsung Motors, a...
(based on the Nissan X-TrailNissan X-TrailThe Nissan X-Trail is a compact crossover SUV produced by the Japanese automaker Nissan since 2001. It was one of Nissan's first crossover SUVs and was released about the same time as several other companies competing car-based compact SUVs including the Ford Escape and its Mazda Tribute sibling,...
, the first crossover auto of RSM, sold in overseas markets with the brand Renault KoleosRenault KoleosThe Renault Koleos is a compact SUV which was first presented as a concept car at the 2006 Mondial de l'Automobile in Paris, with first concept demonstrated on 2000 Geneva Motorshow. The Koleos was designed by Renault and developed by Nissan. It is manufactured by Renault Samsung Motors, a...
) - SM7 (based on the Nissan TeanaNissan TeanaThe Nissan Teana is a luxury mid-size car produced by Nissan of Japan, introduced in 2003. It is exported as the Nissan Maxima and Nissan Cefiro to certain markets, not to be confused with the Nissan Maxima sold in North America with which it shares a platform .It is also exported to Mauritius as...
) - New SM5 (based on the Renault Laguna IIIRenault LagunaThe Renault Laguna is a large family car produced by the French manufacturer Renault. The first Laguna was launched in 1993, the second generation was launched in 2000, and the third generation was made available for sale in October 2007....
) - SM5 (previously based on the 1995 Nissan CefiroNissan CefiroThe Nissan Cefiro is a intermediate-size automobile range sold in Japan and other countries. The 1989 model was introduced initially as a 4-door sedan, however a wagon was later produced. A large proportion were equipped with automatic transmissions....
and Nissan MaximaNissan MaximaThe first car to wear the Maxima name was introduced in 1981. It was essentially a Japanese-market Bluebird 910 with a longer nose. The car was offered as the 810 Deluxe or 810 Maxima that first year, and all 810s became Maximas for 1982...
, replaced in 2005 by a model based on the Nissan TeanaNissan TeanaThe Nissan Teana is a luxury mid-size car produced by Nissan of Japan, introduced in 2003. It is exported as the Nissan Maxima and Nissan Cefiro to certain markets, not to be confused with the Nissan Maxima sold in North America with which it shares a platform .It is also exported to Mauritius as...
) - SM3Renault Samsung SM3In April 2009, a redesigned SM3 was unveiled at the Seoul Motor Show.The new SM3 is essentially a notchback Mégane 3 with minor cosmetic changes, also badged as Renault Fluence.-SM3 Z.E.:...
(based on the Renault FluenceRenault FluenceIn 2004, Renault presented a 2+2 concept coupé, named Fluence and designed by then Renault chief designer Patrick le Quément, with a length similar to that of the Renault Laguna....
) - SM3 CERenault Samsung SM3In April 2009, a redesigned SM3 was unveiled at the Seoul Motor Show.The new SM3 is essentially a notchback Mégane 3 with minor cosmetic changes, also badged as Renault Fluence.-SM3 Z.E.:...
(based on the first generation Nissan Bluebird SylphyNissan Bluebird SylphyThe Nissan Bluebird Sylphy is a compact car made by Nissan The first Bluebird Sylphy is the Pulsar 4-door sedan which sold in the Japanese domestic market only in order to keep the Bluebird name alive, due to the car's traditional competitor the Toyota Corona...
; distributed in Mexico, Colombia and Egypt as Renault Scala)
Future lineup
- FM5 (based on the Renault Grand Scenic)
- SM1 (based on the Renault ClioRenault ClioThe Renault Clio is a supermini car produced by the French automobile manufacturer Renault. Originally launched in 1990, it is currently in its third generation...
)