The Asian automotive industry is undergoing another serious shake-up after the Chinese giant Chery Automobile officially confirmed its intention to acquire a significant stake in the South Korean company KG Mobility Corp, which produces former SsangYong-branded cars. The deal, valued at 75 million US dollars, will be implemented through convertible bonds. If they are eventually converted into securities, the concern from the Celestial Empire will get its hands on approximately 10 percent of the capital of its Korean partner, becoming one of the main shareholders in the company.
The offensive is a clear sign of the ambitions of Chery - the company that currently holds the championship in car exports among Chinese manufacturers - to consolidate its positions on the world stage. According to the president of Chery International, Zhang Guibin, the cooperation will build on the brand's global production network, with the optimization of assembly capacities, common distribution channels and the development of joint brand products envisaged.
The first concrete fruit of the new partnership will be the SE-10 mid-size SUV, the debut of which is scheduled for early next year. The KG Mobility model is based entirely on the T2X architecture developed by Chery, and will be offered with both traditional gasoline engines and hybrid drive systems. Initial plans include implementation on home soil and in certain international markets. Although stepping across the ocean is not yet on the agenda, the management of the Korean brand does not rule out a future debut in the United States, while Chery states that they are carefully studying the regulatory framework for a possible entry into American soil.
However, the scale of the cooperation goes beyond the framework of traditional automotive manufacturing. The two countries have formed a special working group to coordinate joint projects in semiconductors, robotics, raw materials and metallurgy. This holistic approach suggests the construction of a long-term technology alliance designed to withstand the dynamic changes in global markets and fluctuations in technology stocks.