Chery Invests $75 Million in KG Mobility to Expand Global Automotive Partnership

Chinese automaker Chery Automobile has decided to invest US$75 million in South Korea's KG Mobility Corporation. The investment will be made through convertible bonds, which, if converted into shares, will give Chery an ownership stake of approximately 10% in KG Mobility.

Expanding Global Production and Market Reach

Zhang Guibing, President of Chery International, said the company operates multiple manufacturing bases worldwide. Through this investment, Chery and KG Mobility aim to strengthen their partnership by sharing global production capabilities, expanding marketing channels, and enhancing brand cooperation.

As China's largest automobile exporter, Chery is seeking to further strengthen its position in the global market. The company is also evaluating opportunities to enter the U.S. market while complying with all applicable laws and regulatory requirements.

New SUV and Broader Technology Collaboration

As part of the partnership, KG Mobility plans to introduce a mid-size SUV, codenamed "SE-10," built on Chery's T2X platform. The model will be offered in both gasoline and plug-in hybrid variants for the South Korean and international markets.

Previously known as SsangYong Motor, KG Mobility is currently one of South Korea's leading automakers after Hyundai, Kia, and General Motors (GM).

During the first half of this year, the company sold more than 55,000 vehicles, with exports accounting for nearly 60% of total sales.

Beyond automobile manufacturing, the two companies have also agreed to establish a joint task force to explore research and collaboration in emerging sectors, including semiconductors, robotics, raw materials, and steel.

//DBTech/BMT/OR//