SEOUL. KG Mobility it will receive a $75 million investment from Chery Automobile through the acquisition of convertible bonds, a transaction that could give the Chinese manufacturer a stake of approximately 10% in the company if the bonds are converted into shares. The agreement strengthens the international expansion strategy of both companies and opens the door to broader cooperation in manufacturing, vehicle development, and industrial technologies.
KG Mobility and Chery will expand their global production
In addition to the financial component, the two companies plan to leverage their respective manufacturing networks to strengthen their presence in international markets. The president of Chery International Zhang Guibing stated that the company is exploring the use of its production facilities in different countries to develop joint projects. Possibilities include sharing manufacturing capacity, optimizing industrial processes, and collaborating on distribution channels and brand strategies.
Zhang also emphasized that strengthening its international presence is one of Chery’s main objectives, as the company remains China’s largest automobile exporter. The alliance reflects a growing trend within the automotive industry, where Chinese manufacturers are forming partnerships with established companies to leverage existing production facilities and accelerate their expansion beyond China.
Joint development of new vehicles
As part of the agreement, KG Mobility it will launch in January the mid-size SUV identified by the codename SE-10, developed on the platform T2X from Chery. The vehicle will be available with engines from gasoline and hybrid plug-in vehicles and will be marketed both in South Korea and in other international markets.
Regarding the United States, Zhang explained that Chery continues to evaluate different options for entering that market. However, he clarified that any progress will depend on compliance with the laws, regulations, and other requirements imposed by U.S. authorities. Meanwhile, Kwak Jae-sun, president of KG Mobility, indicated that the company remains interested in exporting its future SUV to the U.S. market, although there is still no set timeline for that project.
Cooperation beyond manufacturing
The collaboration between the two companies also includes the creation of a working group to identify new opportunities for cooperation in areas such as semiconductors, robotics, raw materials, steel, and other related technologies automotive industry.
With this initiative, Chery and KG Mobility seek to expand their relationship beyond vehicle development, incorporating industrial solutions that strengthen their competitiveness and improve the efficiency of their international operations.
KG Mobility is committed to international growth
KG Mobility, formerly known as SsangYong Motor, continues to strengthen its growth strategy in a market led by Hyundai, Kia and General Motors within South Korea.
During the first half of the year, the company sold more than 55,000 vehicles between the local and international markets. Approximately the 60 % of those sales corresponded to exports, which confirms the growing importance of foreign markets within its commercial strategy.
Chery’s investment represents a further step in consolidating an alliance focused on expanding production capacity, developing new models, and strengthening the international presence of both companies. The agreement also reflects how cooperation between Asian manufacturers continues to gain relevance as a tool to accelerate growth in an increasingly competitive automotive market.
Source: Reuters
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