Israel Corp. and Chery slashed their joint investment in the venture to $500 million.
Israel Corporation (TASE: ILCO) and China's Chery Automobile Company have amended the agreement for their joint venture for the development of gasoline and electric cars. Israel Corp. subsidiary Quantum Ltd. and Chery revised the capital investment in the venture for 2009-10 and revised their respective holdings in it.
The companies will reduce their joint investment from $900 million to $500 million, and Quantum will increase its stake in the venture from 45% to 50%. The joint venture will also develop fewer models, which will delay the need to build a special factory.
Israel Corp's share fell 6% in early trading on the TASE today to NIS 1127, as part of a general market drop.
Published by Globes [online], Israel business news - www.globes-online.com - on March 1, 2009
© Copyright of Globes Publisher Itonut (1983) Ltd. 2009
Irit Avissar, Dubi Ben Gedalyahu and Lior Baron