November 24, 2021 11:23
China's Dongfeng Motor has decided to end its tie-up with Kia established in 2002 to produce and sell cars in China.
Dongfeng said Monday that it is selling its 25-percent stake in the joint venture Dongfeng Yueda Kia.
The Chinese automaker's stake was worth W20.8 billion when the it launched the joint venture but is now valued at around W55.3 billion, increasing just 2.7 times over nearly two decades (US$1=W1,189).
Chinese media reported that Kia is expected to buy Dongfeng out, but a Kia source said, "Nothing has been decided."
Dongfeng Yueda Kia sold 650,000 cars in 2016 to rank 11th in China, but sales plummeted amid a Chinese boycott of Korean goods and services the following year and never recovered, reaching just 130,000 in the first 10 months of this year. Cumulative losses total around W1.68 trillion.
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