18:56 03-08-2026

Chery Invests $75 Million in KG Mobility as Chinese Platform Powers New Rexton Successor

China's Chery Automobile will invest $75 million in South Korea's KG Mobility through convertible bonds, with its stake potentially growing toward 16% by 2029.

Chery has agreed to invest $75 million in South Korea's KG Mobility, formerly known as SsangYong. The agreement was signed on August 2 in Seoul. The funds will come through convertible bonds: if Chery converts them into shares, its stake will stand at around 10%, potentially rising to nearly 16% by the bonds' maturity in 2029 — a level that would make the Chinese company KGM's second-largest shareholder. For now, this is neither a takeover nor a transfer of control over the Korean automaker.

According to Reuters, the two companies intend to make use of each other's overseas factories, production capacity and sales channels. Beyond vehicles, a joint working group will explore cooperation in semiconductors, robotics, raw materials and steel.

The investment deal builds on an existing agreement covering the Chery T2X platform. Korean filings put the total value of the license at $120 million. The $75 million payment includes the purchase of KG Mobility's convertible bonds. The license is non-exclusive, allowing the Korean company to independently develop, build, sell and service vehicles in agreed markets.

The first major model to emerge will be a midsize SUV codenamed SE-10. Reuters reports its launch is planned for January 2027, with the lineup including a 2.0-liter gasoline version and a plug-in hybrid. KGM has previously described the SE-10 as the successor to the body-on-frame Rexton and said it is co-developing autonomous driving systems and electronic architecture with Chery. The two companies have already begun work on a second joint project — a model intended for sale not just in Korea and China but in European markets as well.

Using a Chinese platform doesn't make the future KGM a rebadged Chery. The Korean side retains control over body development, chassis tuning, production and its own dealer network. Final engines, transmissions and equipment specs for the SE-10 have not yet been disclosed.

The final result of the deal should be a faster refresh of KGM's model lineup. Buyers, meanwhile, will need to judge each model on its own tuning, warranty terms and hybrid-component availability rather than on where the platform came from.