Contrary to rumors in the Chinese media, Idan Ofer of the Israel Corporation said he has no plans to pull out of the joint venture with automaker Chery in Chinese electric car maker Qoros, according to the Wall Street Journal. Ofer said he is, “looking forward to competing all over the world with established OEMs (Original Equipment Manufacturers), ” and said, “there is no doubt we will grow this company to be a respected, profitable OEM, starting in China, our home market.”
However, the company looks like it is off to a slow start and is in need for more funding. The company’s losses are $134 million for the year. Israel Corp. has invested $600 million in the company, which is twice the funds it invested in the failed electric car company, Better Place.
New cars launched for Qoros will mean greater expenses, and management said it doesn’t expect to be profitable in 2014-2015.