Chery Automobile has agreed to invest $75 million in South Korea’s KG Mobility (KGM) through convertible bonds. If the bonds are fully converted into shares, Chery will hold around 10% of KGM’s equity. The move marks a significant step in Chery’s efforts to strengthen its overseas presence and deepen international partnerships.
KGM, formerly known as SsangYong Motor, is one of South Korea’s long-established automakers. It is the country’s fourth-largest carmaker by sales, behind Hyundai Motor, Kia, and GM Korea. In the first half of this year, KGM sold more than 55,000 vehicles across domestic and overseas markets, with exports accounting for roughly 60% of total sales.
The first product resulting from the partnership is expected to debut next year. KGM plans to launch the SE-10, a mid-size SUV, in January next year. Built on Chery’s T2X platform, the model will be available in both gasoline and plug-in hybrid (PHEV) variants, targeting customers in South Korea and international markets. [Reuters]