Chery got rid of the share in Qoros

At the end of December it became known that the Chery company finally managed to get rid of the burden in the form of a 50% stake in the Qoros company, which was created in conjunction with Israel Corporation (later the Israelis sold their stake to the Kenon Synagogue Fund).

No one wanted to do Qoros, because its sales are estimated at 20-24 thousand cars per year: so many other Chinese auto companies sell … for a week. Initially, Qoros was created for expansion into the European market has in the scale one sedan and two crossover, and the sedan Qoros 3 even earned five stars in independent crash tests. But lack of funding led to the fact that all foreign top management left Qros, and the company itself was vegetating, getting crumbs from Chery.

The Chinese private holding Baoneng, owned by Yao Zhonghua (11th among Chinese billionaires by Forbes version) became the buyer of 51% share. The deal cost about one billion dollars.

Qoros needed Zhonghua for the production of electric vehicles, which he began to take an interest in in 2015. Baoeng has already acquired two suppliers: Jonjee Hi-Tech Co. Ltd. and Guangdong Shaoneng Group Co. The first produces gears, rear bridges and forged metal parts, and the second is a supplier of electric motors and batteries for electric vehicles.

The desire to do electromobiles was hampered in the absence of Baoneng’s production facilities and related licenses. With the acquisition of Qoros, the holding received both. Moreover, Zhonghua plans to build three more plants in Guangzhou, Hangzhou and Kunmun, the relevant agreements with local authorities have already been concluded by Baoneng. In the long term, Baoneng will be able to produce up to one million electric vehicles a year.

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