Hybrid Kinetic Group said to buy Chery’s 87.5% stake with RMB 12 billion

Shanghai (Gasgoo)- It is reported that certain industry insider said that Hybrid Kinetic Group will invest RMB 12 billion to buy 87.5 percent stakes of Chery, which has been repeatedly reported being sold in the past two weeks. However, the source didn’t reveal many details.

Yang Rong, the founder of Brilliance Auto who facilitated the cooperation between Brilliance and BMW, made a high-profile return to the public’s attention in 2009 with a huge plan to manufacture vehicles. Yang established Hybrid Kinetic Group in Hongkong as the platform to make vehicles in the mainland. In spite of various difficulties, the Group managed to show a new energy vehicle concept named H600 in the 2017 Geneva Auto Show.

With many subsidiaries across the world, HK Group focuses its business on the development, manufacturing and marketing of clean energy vehicles and their key components comprising energy battery, electric motor and electric control system. According to the company, it will invest and construct a clean energy vehicle production base in Fenghua District of Ningbo, a city in Zhejiang Province. The new base’s output will be up to 300,000 units.

Last month, Chery’s sales reached 50,000 units with an export of 8,676 units. The accumulative sales of the first nine months were up to 80,056 units. But it’s not the company’s sales performance that grabbed the headlines but the rumors on the potential change in its owner. At first, Chery was said to be sold entirely to a private enterprise. Then it is said that companies which have contacted Chery include Wuliangye, Baoneng, Baidu, Industrial Bank and Dong Mingzhu, chairman and president of Gree Electric Appliances, was also reported to have contacted Chery.