Israel Corporation has announced that it will officially cut ties with the Chinese car manufacturer Qoros, a joint venture of Israel Corporation and Chinese company Chery (50% each), which develops and markets motor vehicles, hybrid vehicles, and electrical vehicles in the Chinese and global markets.
Israel Corp. invested US$650 million over the past seven years to develop sedan cars for sale in China and Europe.
Idan Ofer, the controlling shareholder of Israel Corp., will continue investing privately in Qoros. In the first quarter of 2014, Israel Corp. invested US$137 million in Qoros. Israel Corp. was founded in 1968 and is currently headed by CEO Nir Gilad.
The joint venture between China’s Chery Automobile Co. and investment group Israel Corp. is being closely watched in the auto industry for its unusual approach to the world’s largest auto market.
It hopes to capture market share with a new brand of midsize sedans that it says will offer better quality with a European cachet. To do that, it will have to contend with the strong popularity of well-known foreign brands made by the likes of Volkswagen AG , General Motors Co. and Nissan Motor Co. , or take market share from established Chinese brands. Qoros cars are manufactured at a new factory near Shanghai.
The company said the plant has an annual capacity of 150,000 cars.
