South Korean automaker KG Mobility Corporation (KGM) this week announced it had signed a strategic partnership, including a vehicle platform licensing agreement, with China’s Chery Automobile Company – in a move designed to “to lay the foundation for future growth”. The deal will help strengthen KGM’s product portfolio by providing access to readily available new energy vehicle (NEV) technologies including vehicle platforms.
The agreement was signed at an event held at Chery’s headquarters in Wuhu, in China’s Anhui Province, on 19th October in the presence of KGM’s chairman Kwak Jea-son and CEO Hwang Ki-young, along with Chery’s chairman Yin Tongyue and Chery International CEO Zhang Guibing.
Go deeper with GlobalData
Speaking at the event, Kwak Jae-son pointed out: “Through this strategic partnership and technical cooperation with Chery Automobile, it will be possible to respond to the rapidly changing automobile market by developing more diverse models, shortening the development period for new cars, and launching new cars that meet customer needs.”
He further clarified: “Through this strategic partnership and platform license agreement, KGM plans to develop mid-size and large SUVs that respond to market changes as well as models for global markets.” The company plans to expand its product range with the introduction of new electrified models based on existing Chery models.
KGM’s global sales fell by 16% at 80,643 vehicles in the first nine months of 2024, while Chery’s sales were down by 9% at 1,58 million units in the said period.
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
