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

China’s largest vehicle exporter, Chery Automobile, has agreed to invest $75 million in South Korean automaker KG Mobility Corp through convertible bonds, marking a major step in expanding their global partnership. If the bonds are converted into shares, Chery will own approximately 10% of KG Mobility.

The investment strengthens collaboration between the two automakers as Chinese car manufacturers increasingly partner with established global brands to maximize the use of underutilized overseas production facilities. Chery International President Zhang Guibing said the companies see significant opportunities to cooperate by sharing global manufacturing capacity, expanding distribution networks, and exploring brand-related initiatives.

Zhang noted that Chery’s extensive international manufacturing footprint could support future joint production strategies, while both companies also plan to work together in areas beyond vehicle assembly. KG Mobility Chairman Kwak Jae-sun confirmed that the firms will establish a joint task force to evaluate partnerships involving semiconductors, robotics, steel, raw materials, and other advanced industries.

As part of the expanded alliance, KG Mobility is preparing to launch its new midsize SUV, codenamed SE-10, in January. The model will be built on Chery’s T2X vehicle platform and will be offered in both gasoline and plug-in hybrid variants for domestic and international markets. Although the SUV is not currently planned for export to the United States, KG Mobility said it remains open to that possibility in the future.

Chery also reiterated its long-term ambition to enter the U.S. market. Zhang said the company is evaluating multiple strategies but emphasized that any expansion would require full compliance with U.S. laws, regulations, and market requirements.

Formerly known as SsangYong Motor, KG Mobility is South Korea’s fourth-largest automaker behind Hyundai, Kia, and General Motors. The company sold more than 55,000 vehicles during the first half of the year, with exports accounting for roughly 60% of total sales. The partnership with Chery is expected to strengthen KG Mobility’s international competitiveness while supporting Chery’s broader global growth strategy.