Samsung mum on stake in Renault unit

Group yet to clarify if it will keep stake in Renault Samsung


Samsung Group has yet to reveal whether it will maintain its automobile brand partnership with Renault Group, while the French automaker dismissed the possibility that Samsung may dispose of its stake in Renault Samsung Motors.

Should Samsung Card, a financial unit of the nation’s largest conglomerate, choose to sell off its 19.9 percent stake in Renault Samsung amid lackluster sales, the auto brand name would also change. Currently, Renault Group is completely in charge of research and development for Renault Samsung cars.

Last week, Renault Group executives including Renault-Nissan Alliance chairman & CEO Carlos Ghosn denied rumors that Ghosn and Samsung Group heir apparent Lee Jay-yong recently discussed how to dispose of Samsung Card’s shares.

Ghosn admitted in a newspaper interview that he met with Lee during the 2012 Paris Motor Show. But he reportedly clarified that there was no discussion on the Renault Samsung stake matter.

Ghosn was quoted as saying that the two sides would further coordinate in the auto component sector.

A number of Samsung executives said it was nearly impossible to access the details of the stake issue. They also declined to make an official comment.

An executive in the local automobile sector said that speculation will arise if Samsung Group and Samsung Card clarify their position.

“Among five major carmakers in the nation, Renault Samsung has been suffering the sharpest drop in year-on-year sales. This could undermine the global image of Samsung Group,” he said.

In July, Carlos Ghosn announced the auto giant’s strategy to roll out Nissan models at Renault’s Korean unit at a news conference.

This will mark the first time that Seoul-based Renault Samsung Motors, whose parent group is Paris-based Renault, takes on production of Japan-based Nissan cars.

Apart from at Renault Samsung, no Japanese car model has been produced in a Korean factory.

Renault Samsung’s manufacturing plant in Busan will be in charge of some Nissan sedans and sport utility vehicles, according to Renault Samsung spokespeople.

As Renault Samsung has been suffering sagging sales, company executives are pinning hopes on the coming Nissan models to revitalize the automaker’s competition with Korean brands ― Hyundai Motor and Kia Motors.

Renault-Nissan Alliance, which rolls out more than one in 10 cars worldwide, will also benefit from the group’s business policy involving the Busan plant.

The Paris-based project has spurred claims that Samsung Card will ultimately hand over its stake to Nissan.

A task for the global auto alliance is to expand its annual production capacity. The supply shortage of Renault-Nissan vehicles in some countries has hampered its global market share.

Meanwhile, Renault and its Korean unit are striving especially hard to expand its presence in China, one the world’s two largest automobile markets.

Renault Samsung recently tapped the larger sedan segment in China. It unveiled the All-New SM7, dubbed Talisman, during the 2012 Beijing International Automotive Exhibition, which was held last April.

By Kim Yon-se (kys@heraldcorp.com)