Chinese state-owned automaker Chery Automobile Company has signed a technology transfer agreement with South Korea’s KG Mobility (KGM), allowing the latter to produce a new range of medium and large SUVs for its domestic market, according to local reports.
The deal follows the signing of a strategic partnership agreement between the two companies last October, including a platform licensing agreement aimed at strengthening KGM’s product range in a market dominated by Hyundai and Kia. The agreement covers platforms for Internal combustion engine (ICE) and hybrid-electric vehicles.
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KGM has also agreed to license other advanced technologies from its Chinese partner, including self-driving technologies and its electrical/electronic architecture for software-defined vehicles (SDVs).
KGM is understood to be aiming to complete the development of a new model, codenamed SE-10, by 2026, using a platform provided by Chery.
At the signing ceremony at Chery’s headquarters in Wuhu, KGM’s chairman Kwak Jae-sun, said “we aim to grow into a sustainable company through strategic cooperation by utilizing KGM’s 70 years of technological know-how and Chery’s global platform.”
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By GlobalData
