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KGM (formerly SsangYong) has entered into a strategic agreement with the Chinese auto giant Chery. The Korean side is expected to be able to gain access to the technology, while Chinese investors hope to reach markets blocked by the blockade through the Seoul plant.
The strategic partnership between Chery and KGM is maintained at the highest level: the agreement was signed by the chairman of the Chinese concern Yin Tunyao and the chairman of KGM Kwak Jae-san. The first joint product will be a crossover: it will probably be a medium or full-size model. Jaguar Land Rover is already interested in Chery platforms, so KGM managed to secure the support of a powerful partner, which will allow to rectify the situation after several years of lack of funding.
Chery is also interested in the South Korean market and the possibility of producing cars outside of China. It is Chery that is one of the largest exporters of Chinese cars, but a number of markets for them are closed due to customs duties: they are fenced off from the Chinese auto industry in North America, Europe and Turkey. The conveyor in Korea will allow you to bypass obstacles with minimal costs.
Chery is not the first Chinese brand to pay attention to the South Korean market. Earlier, Geely concluded an agreement with the local branch of Renault: the Grand Koleos crossover is an analogue of the Monjaro. Perhaps the expansion of the KGM range will also follow a similar path.
