Israel Corporation (TASE: ILCO) is lending its Chinese car developer Qoros $130 million, as an owner's loan in order to free the joint venture in which it owns a 50% stake from a $300 million guarantee.
Israel Corp. reported to the Tel Aviv Stock Exchange this morning that it would extend the loan in two payments: $60 million in the fourth quarter of this year and $70 million in the first quarter of 2015.
Israel's Corp. is partners in Qoros with Chinese car manufacturer Cherie. Since the company's establishment, Israel Corp. has invested $600 million in the project (half the $300 million invested in failed electric vehicle operator Better Place) to develop cars, including regular, hybrid and electric vehicles, of a quality that compares with the major European, US, Japanese and Korean manufacturers. Since the start of 2014 alone, Israel Corp. has injected $122 million into Qoros as part of its business plan.
In the second quarter of 2014, Qoros's losses doubled to $78 million. Qoros had sold 2,540 cars by the end of June 2014 including the Qoros 3 Sedan, launched at the end of 2013, and the Qoros 3 Hatch, launched in the second quarter of 2014.
Published by Globes [online], Israel business news - www.globes-online.com - on October 1, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2014