Renault Samsung Launches Flagship SM7 Nova

Renault Samsung Motors bills its much-awaited SM7 Nova, officially launching sales in South Korea this week, as “the essence of European prestige.”

Designed and developed by RSM and Renault-Nissan Alliance partners, the new model is being built at RSM's still underused Busan, South Korea, plant. It replaces the current SM7, sales of which have dwindled since more than 17,000 were delivered in 2005, its first full production year.

The SM7 Nova, loaded with high-end features and options, is available with Nissan’s venerable 3.5L V-6 VQ engine. Mated to a 6-speed automatic transmission, it produces 258 hp at 6,000 rpm and achieves a fuel-economy rating of 22.1 mpg (10.6 L/100 km). Standard is a 190-hp 2.5L 4-cyl. rated at 24.0 mpg (9.8 L/100 km).

RSM Executive Vice President Dong-Hoon Park calls the SM7 Nova “the ideal product that will help us overcome the weak performance of the past and fully play its role as the flagship model.”

The new sedan features the industry’s first Wi-Fi hookup that allows smartphones to work through the vehicle’s infotainment system. RSM says Wi-Fi allows for faster communication than more widely used Bluetooth connectivity.

Push-button start is standard, as is a tire-pressure-monitoring system. Also offered is navigation, collision-avoidance technology that detects obstacles around the car and a Bose 12-speaker sound system.

RSM says the industry’s first use of stamped magnesium parts helped cut weight, including in the rear-seat support plate that trimmed 3.1 lbs. (1.4 kg).

The SM7’s reworked body panels create a smoother, more streamlined look with a bolder front end. However, dimensionally there are no changes compared with the current model that measures 196.7 ins. (4,995 mm) in overall length.

Pricing is slightly higher than the current SM7, with the Nova model offering three trim levels with the 2.5L engine, ranging from 30.4 million to 34.9 million won ($29,900-$34,300). Two trims are offered with the V-6, ranging 3.52 million-3.87 million won ($30,000-$30,332).

Sales of the outgoing SM7 totaled 231 units in August, about even with year-ago, but deliveries for the first eight months were up nearly 15% from like-2013.

Overall, RSM, like its competitors, is struggling in a domestic market made unfavorable by high consumer credit levels, as well as adverse publicity caused by wrangling during the traditional wage-negotiating period. Its exports also are hurting, but not as badly as those of most competitors.

In August, RSM’s total global sales were off 2.3% to 10,559 units. Total domestic sales fell 6.9% to 4,741, but exports rose 1.8% to 5,717.

For the first eight months, RSM’s total domestic sales jumped 30.9% to 47,758 units. Exports slid 12.1%, to 37,910.

Analysts note that, barring more strike actions by the union that could further upset production schedules, the Nissan Rogue will start shipping to the U.S. from RSM’s plant this month, potentially helping the Korean automaker’s exports rebound to 2013 levels.