Renault Samsung inks MOU for electric cars

Renault Samsung Motors Co., the South Korean unit of French automaker Renault S.A., said Friday that it has signed a memorandum of understanding with the country’s Environment Ministry and six other companies to promote the use of electric cars.

Under the deal, Renault Samsung will develop an electric car and sell it below 45 million won. The Environment Ministry, in return, will provide subsidies to companies and public offices that buy electric cars.

Renault Samsung and the government will work together to set up infrastructure such as charging stations that make it more convenient to use electric cars, according to the company.

Other details of the MOU were not revealed.

South Korea’s government said earlier it will begin producing mid-size electric vehicles from 2014 in an attempt to secure a dominant position in the global market. (Yonhap News)