Chery has agreed to invest US$75m (KRW 108bn) in South Korean automaker KG Mobility (KGM) through convertible bonds, giving the Chinese automaker an initial stake of around 10%, rising to as much as 16.22% according to Korean financial media if the bonds are fully converted near their 2029 maturity. The deal extends a partnership that began with a platform-licensing agreement in October 2024 and a joint SUV development deal in April 2025; while unconfirmed, the deal opens the door for Chery to use KGM’s facilities as an overseas production hub. For now, however, the two companies will jointly develop a mid-size SUV, codenamed SE-10 and positioned as the successor to KGM’s Rexton. The as-yet-unrevealed model will be built on Chery’s T2X platform and offered in plug-in hybrid and internal combustion engine variants from early 2027. A second joint model aimed at global markets including Europe is already planned, as well as an extended-range electric vehicle (EV). The cooperation extends well beyond cars, touching on semiconductors, robotics, raw materials and steel. Indeed, executive-level task forces are being set up to explore joint investment in automotive chips and autonomous driving architecture specifically. Both companies took pains to emphasise that the investment gives Chery no role in, or influence over, management. In remarks to local media, KGM Chief Executive Hwang Ki-young explicitly ruled out Chery vehicles being contract manufactured at its Pyeongtaek plant, nor any concrete plans at present to use its other plants. Pyeongtaek has recently upgraded its assembly lines to accommodate EV production. KGM also operates a plant at Changwon, also this focuses on ICE production exclusively, and has manufacturing agreements in both Vietnam and Indonesia. On the other side of the table, however, the tariff logic behind the deal is being stated openly. Chery President Zhang Guibang said directly that