Chery Automobile to Invest $75 Million in South Korea's KG Mobility
Chinese automaker Chery Automobile will invest $75 million in South Korea's KG Mobility (KGM), acquiring a potential 10% stake and enhancing its international presence.
Chery Automobile has agreed to invest $75 million in South Korea's KG Mobility (KGM) via convertible bonds, which could result in Chery holding approximately 10% of KGM's equity upon full conversion. This strategic investment marks a significant expansion of Chery's global footprint and a deepening of its international collaborations.
The investment positions Chery to leverage KGM's established presence in the South Korean market. KGM, formerly known as SsangYong Motor, is the fourth-largest automaker in South Korea by sales, following Hyundai Motor, Kia, and GM Korea. In the first half of the year, KGM sold over 55,000 vehicles, with exports comprising about 60% of its total sales.
As part of this partnership, the first jointly developed product is slated for release next year. KGM intends to introduce the SE-10, a mid-size SUV, in January. This new model will utilize Chery's T2X platform and will be offered in both gasoline and plug-in hybrid (PHEV) versions, targeting consumers in South Korea and global markets.