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Dongfeng Motor officially withdraws from Dongfeng Yueda Kia

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Date: Dec 23,2021 View:3384

Dongfeng Motor Corporation’s formerly reported transfer of its 25% stake in Dongfeng Yueda Kia, its joint venture with South Korea’s Kia Motors and China’s Yueda Group was completed, according to Shanghai United Assets and Equity Exchange (SUAEE).

SUAEE’s releasement showed that the said 25% stake of Dongfeng Yueda Kia was sold by RMB297 million, representing Dongfeng Group’s official withdrawal from the joint venture.

After the withdrawal, the future stake structure of the joint venture remained unsolved. Kia Group disclosed to local media outlets that the company is negotiating with Yueda Group regarding the matter, and the final results should be known in April 2022.

Dongfeng Yueda Kia was co-founded by the three parties back in 1992, with Dongfeng Motor Corporation, Yueda Group, and Kia Motors holding 25%, 25%, and 50% stake respectively.

The 29 years old joint venture has seen better days before the current transformation within the industry. Public records from SUAEE indicated that the joint venture had reported a total loss of RMB4.75 billion in 2020. During the first ten months this year, the loss of Dongfeng Yueda Kia amounted to RMB2.612 billion.

Notably, the registered business term of the joint venture will soon end on September 11th, 2022.