Foreign CEO appointed in domestic auto sector

A joint venture of Renault and Samsung Motors Co was launched September 1 as Samsung, Renault and creditors agreed on the joint venture and the repurchase of assets.

Renault¡¯s vice president of purchase, Jerome Stoll, will head the joint venture. With his appointment, he will be the first foreign CEO in the domestic automobile sector.

Renault and Samsung Motor Co finalized September 1 the terms and conditions of the joint venture and the negotiations for the repurchase of assets. They agreed that Renault will hold 70.1% (308 billion won, $280 million) of shares in the joint venture while the rest will be divided between Samsung, with 19.9% (88 billion won, $80 million) and the creditors with 10% (4 billon won, $40 million).

Consequently, Samsung Motor Co will be closed forever after 5 years and 5 months of court receivership. Renault-Samsung announced that the accounting of the joint venture will be consolidated into Renault group¡¯s accounting, confirming that the joint venture will be a member of the Renault Group. The official opening of the joint venture will take place September 7 at the Busan factory with officials from Renault and Samsung.