Renault Korea said Tuesday its labor and management have agreed to join forces to push for the company’s Busan factory to become a global production base for the French carmaker.

According to the company, Renault Korea CEO Stephan Deblaise and Kim Dong-suk, the labor union leader, signed a joint declaration that underscores a win-win partnership and mutual trust.

“Based on renewed labor-management relations, we should fulfill our vision as one team. Without cooperation from the labor union, there can be no future for the company,” said the Renault Korea CEO during the signing ceremony.

"We should join forces to successfully launch a hybrid sport utility vehicle next year," he added, stressing the need to boost the Busan factory as Renault’s global hub to export medium- and large-sized cars.

The CEO recently marked his first year since taking office in March last year.

Under partnership with Chinese-based Geely Motors, the Korean unit plans take charge of the designing of a medium-sized hybrid SUV, which will use Volvo’s electric vehicle platform. The company also plans to add more hybrid lineups and produce battery powered EVs by 2026.

Renault Korea has made no new car launches since 2020 when it released the XM3 small SUV. Its SM6 sedan and QM6 medium-sized SUV, both launched in 2016, also still await face-lifts.

In September last year, the carmaker's labor union and management successfully concluded their collective bargaining without any conflict -- for the first time in four years.