Kia is taking another hit with its new financing deal with KIA Finance.
The carmaker announced on Thursday that it had signed a new 10-year agreement with the Chinese company to buy back shares and raise money for Kia, its main U.S. competitor.
Kia has been under intense scrutiny over its $5.7 billion loan to the company and its inability to repay that debt.
The U.K.-based auto maker, which recently sold its fleet of SUVs to Japanese automaker Nissan, has said it is planning to sell some of its fleet in the U.P. to help pay down the loan.
But it has been hard to sell the cars and has been forced to buy from Kia instead.
In its announcement, Kia said that the new deal with the Kia finance arm would help Kia continue to grow, while also helping Kia build its own products.
The deal with an investment bank is “a significant step in Kia strategy,” Kia Finance Chief Executive Mark Schulman said.
KIA has already spent $1.8 billion to buy about 6,500 Kia models and sell about 1,700, according to the Wall Street Journal.
In a blog post, KIA said that it planned to make “a positive contribution to Kia by continuing to invest in the business and developing new Kia products.”
But the company did not specify how much money it had to invest.
Kias new financial arrangement with Kias financial arm was announced after the two companies reached a “preliminary agreement” on March 23, according the blog post.
Kiamens finance arm was created by the two company’s former chief executive, Terry McDonough, and Schulmann.
Kia has said the loan was for only $5 million, but the new agreement could be more than that, as Kia may have to invest at least another $4.5 billion in the deal to repay it.
It also has said that its new agreement with Kiamen would allow Kia to continue to focus on “product innovation, the acquisition of more customers, and expanding Kia into the global automotive and consumer markets.”
Earlier this month, Kiameny, the KIA unit of Kia that focuses on Kia vehicles, also announced a deal with China-based auto giant BYD to buy 3,600 Kia SUVs.
On Thursday, Kiong-based Kia unveiled a new vehicle at the 2016 New York International Auto Show.
The Kia Spark was unveiled in partnership with BYD, and it will be offered at the same time as the Kias $1,500 loan.