Chery has agreed to invest 75 million US dollars (108 billion South Korean won) in automaker KG Mobility (KGM) through convertible bonds, Automotive World reports. This will give the Chinese company an initial stake of about 10%, which, according to Korean financial media, could grow to 16.22% if the bonds are fully converted closer to maturity in 2029. The agreement expands the partnership that began with the licensing of the platform in October 2024 and the joint development of the SUV in April 2025. Although it has not been confirmed, it may also give Chery access to KGM's facilities as an overseas production center.
The companies will now jointly develop a mid-size SUV codenamed SE-10, the likely successor to the KGM Rexton. The model will be built on the Chery T2x platform and will be offered with a plug-in hybrid drive or internal combustion engine from the beginning of 2027. A second joint model is also planned for global markets, in particular the European one, and an electric car with an increased power reserve.
The cooperation will cover not only the automotive industry, but also semiconductors, robotics, raw materials and steel. The management is creating working groups to explore joint investments, in particular in the production of automotive chips and autonomous control systems. At the same time, both companies stressed that the investment does not have a Chery management role or influence on KGM.