Investment firm Quantum and Wuhu Chery Automobile Investment Co Ltd have agreed to sell a controlling stake in their Shanghai-based car-making joint venture Qoros Automotive Co Ltd to an undisclosed Chinese investor, according to local reports.
Qoros Automotive was established ten years ago as a premium domestic brand in China, with sales just exceeding 24,000 passenger cars last year.
Earlier this year Qoros signed an agreement with local authorities in Yibin City, Sichuan province, to invest CNY5.5bn (US$800m) in a new 500,000-unit-per-year assembly plant.
Quantum’s parent company Kenon Holdings confirmed that this agreement has been cancelled after Yibin City authorities failed to make an agreed equity investment in the joint venture.
Chen Anning, chairman of Qoros and CEO of Chery, confirmed that as part of the new agreement Quantum and Chery will become minority shareholders in Qoros after the new investor injects CNY6.5bn (US$950m) of fresh capital into the joint venture.
He also said Chery and Qoros will strengthen their collaboration in platform sharing, technology development and purchasing. Qoros will focus on developing new energy vehicles with high levels of connectivity.
Details of the new investor have not yet been disclosed as the deal is still subject to regulatory and creditor approval.