Kia and Yueda plan to form a new joint venture company and plan to increase capital by US$900 million

Blue Whale Automobile, February 7, today, South Korea's Kia Co., Ltd. signed an expansion investment agreement with Yancheng People's Government and Jiangsu Yueda Group. According to the agreement, Kia and Yueda plan to form a new joint venture, the new joint venture plans to increase the capital of 900 million US dollars, through the expansion of investment, the introduction of new models, the development of new energy vehicles, the establishment of export bases and other ways to increase vehicle sales and capacity utilization. According to the plan, the new company name will be released in April this year.

Previously, Dongfeng Motor Group, Yueda and Kia established a joint venture of Dongfeng Yueda Kia Automobile, with a share ratio of 25%, 25% and 50% respectively.

In December 2021, Dongfeng transferred 25% of the equity of Dongfeng Yueda Kia for 297 million yuan, officially withdrawing from Dongfeng Yueda Kia, and the joint venture company changed from a three-party shareholding to a two-party shareholding of Yueda and Kia. As the sole bidder, Yueda Group delisted 25% of the shares of Dongfeng Yueda Kia Automobile listed by Dongfeng Motor Group.

Kia said it set a target of more than 4 million vehicles in China over the next decade. Kia will focus on promoting the introduction of global strategic models and new energy vehicles. In 2023, From Asia will introduce ev6 electric vehicles based on the E-GMP platform in China, and by 2027, Kia will launch new electric products in the Chinese market every year, building a pure electric product matrix composed of 6 electric models.