The KGM brand (formerly SsangYong) has entered into a strategic agreement with the Chinese car giant Chery. The Korean country is expected to gain access to Chery's technology and Chinese investors to reach markets closed by protective tariffs through KGM's plant in Seoul. It is likely that KGM will have access to Chery's modular platforms, although there are no details yet.
The strategic partnership between Chery and KGM is supported at the highest level: the agreement was signed by the chairman of the Chinese concern and the head of KGM. The first joint product will be a crossover: it will probably be in the compact middle class. Jaguar Land Rover is also interested in Chery's platforms, which experts say are excellent, so KGM was able to attract the support of a powerful partner that will correct the situation after several years of lack of funding.
Chery is interested in both the South Korean market and the possibility of manufacturing cars outside of China. Chery is one of the biggest exporters of Chinese cars, but a number of markets are closed to them due to the new tariffs: North America, Europe and Turkey have fenced themselves off with tariffs from the Chinese car industry. An assembly line in Korea will allow obstacles to be circumvented with minimal costs.
Chery is not the first Chinese brand to pay attention to the South Korean market. Before that, Geely concluded an agreement with the local subsidiary of Renault: the Grand Koleos crossover is a redesigned Monjaro. Perhaps the expansion of the KGM range will also follow a similar path.