Key facts
- Chery Automobile will invest $75 million in KG Mobility.
- The investment will be made through convertible bonds.
- Chery may acquire a 10% stake in KG Mobility.
- The companies plan to cooperate on manufacturing.
- The companies plan to cooperate on distribution.
- The companies may enter the U.S. market together.
Chery Automobile, a Chinese car manufacturer, is set to invest $75 million in South Korean automaker KG Mobility. This significant investment will be made through the purchase of convertible bonds. Upon conversion, Chery could acquire approximately a 10% ownership stake in KG Mobility. The partnership between the two companies is expected to encompass several key areas, including joint efforts in manufacturing and distribution strategies. A notable aspect of their collaboration will be the potential for a joint entry into the U.S. market. This move signifies Chery's ambition to expand its global footprint and leverage KG Mobility's existing infrastructure and market presence.