By Richy QiuInsightsCheryKGMChina AutoPlatform ExportAftermarketParts Sourcing
In 2004, SAIC paid $500 million to take control of Ssang Yong. It ended in bankruptcy and retreat. In 2026, Chery is paying $75 million for a 10% stake in the same company — now called KGM — via convertible bonds. No management control. No board seats. No direct involvement in daily operations.
KGM sells around 110,000 vehicles a year. That’s small. But those vehicles are sold through established dealer and service networks in over 60 countries — Europe, Middle East, Latin America, Australia. Think about what it costs to build a service network in 60 countries from zero.
Dealer contracts, parts warehouses, workshop training, warranty systems, local regulatory compliance. That’s a decade of work and billions in investment. Chery is buying access to that infrastructure for less than the cost of building one European parts warehouse network. A car without a service network is an export.
A car with a service network is a brand. From where I sit, $75 million is a small number for a carmaker. But the distribution network it unlocks, and the parts complexity it imports, will be felt in workshops for the next decade.
