Qoros teams with strategic partners in China

Qoros electric car  photo: PR
Qoros electric car photo: PR

The company has announced orders for 30,000 vehicles to be supplied to large institutional customers over the next two years.

At the end of last week a press conference was held in China at which Qoros, the automotive joint venture between Kenon Holdings and auto maker Chery, signed cooperation agreements with four major Chinese strategic partners. Three of them are Beijing's energy and power company, Chinese media and communications giant Tencent, and Chinese leasing and finance company PICC.

At the press conference, the partners announced orders for 30,000 Qoros vehicles to be supplied to large institutional customers over the next two years. This is more than Qoros's entire sales volume in 2016, which was a peak year for the company.

In addition, the partnership will focus on developing innovative marketing methods, by-passing the traditional dealership chains, among them live television marketing, with the aim of appealing to a younger market. Qoros will shortly begin selling a compact SUV under the name "Young", based on an existing Chery model. Qoros will also develop vehicles with alternative propulsion, in collaboration with the Beijing power company.

In June, Qoros reported that it would bring in a strategic investor who would buy 51% of its shares. So far, the company has not revealed the identity of the investor or the structure of the investment. Qoros currently suffers from severe cash flow pressure, having failed to meet production and sales targets. In the period January-July this year it delivered just 6,768 vehicles, considerably fewer than in the same period last year.

Published by Globes [online], Israel business news - www.globes-online.com - on August 16, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Qoros electric car  photo: PR
Qoros electric car photo: PR
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