Renault Samsung Moves Ahead With Dual SM3 Z.E. Programs
Executive Summary
The Korean subsidiary is starting to import the first-generation electric sedans made in Turkey for government fleets as well as preparing for its own production launch of the next-generation models for sale to the public.
South Korean auto maker Renault Samsung has begun importing some of the first-generation SM3 Z.E. electric vehicles that will make up an initial fleet of 500 EVs to be sold to government agencies this year.
The imported cars, which are identical to the Renault Fluence Z.E. electric car marketed in Europe, are built by the French auto maker’s majority-owned Oyak-Renault joint venture in Busa, Turkey.
But they are different from the second-generation models the Korean subsidiary will begin producing at its Busan plant in the year’s second half. The newer models will be equipped with LG Chem’s lithium-ion battery pack and offer both a regular-charge and quick-charge system, the auto maker’s spokesman says.
The first-generation SM3 Z.E. models are powered by Automotive Energy Supply’s Li-ion battery pack and only offer a regular-charge system.
The price of the first-generation SM3 Z.E. cars to be sold to government agencies will be 64 million won ($55,300) each. That will be reduced by a 15 million won ($13,000) federal subsidy, cutting the retail price to 49 million won ($42,300).
Additionally, the South Korean government will waive the 7% new-vehicle registration fee of 4.2 million won ($3,600).
No price estimates have been given for the second-generation SM3 Z.E. that will launch production and domestic sales to the public next year.
The current price of the LG Chem battery pack reportedly is 24 million won ($21,000), roughly half the subsidized price of the vehicle. The battery fee is expected to be reduced depending on sales volume.
Additionally, as with the current Renault Fluence Z.E. in Europe, the second-generation SM3 Z.E. produced in Korea will be available with a leased battery pack. The monthly charge for the Fluence’s AESC battery pack is roughly 137,599 won ($120) for a 36-month/6,000-mile (9,660-km) per annum contract.
The LG Chem battery-pack lease arrangement is being planned with Renault Capital International Financial Services Korea, the spokesman says.
However, the government is not moving as quickly as anticipated in setting up a network of recharge stations, he says. This could influence Renault Samsung’s delivery plans for the first-generation EVs this year, as well as the domestic production launch of the second-generation SM3 Z.E. in 2013.
