Chinese carmaker Chery Automobile has set up a joint venture
with Quantum LLC, a U.S. subsidiary of Tel Aviv-listed Israel Corp,
in its attempt to explore the European and U.S. markets.
The joint venture, Chery Quantum Automobile, has registered at
the administration of industry and commerce in east China's Anhui
Province, sources from Chery said.
Quantum LLC spent 225 million U.S. dollars for a 45 percent
stake in the new entity, while Chery provided mainly technology and
land to get a controlling 55 percent. The two parties planned a
total investment of 1.5 billion U.S. dollars into the joint
venture, which would be the biggest joint venture in Anhui.
A Chery official said it is the first time for a Chinese
automaker to provide technology, rather than direct financial
investments, to form a joint venture with a foreign company.
Chery Quantum Automobile is expected to start production in 2009
and aims to produce 150,000 vehicles a year.
Chery's vehicle sales are forecast to reach a record 480,000
units this year, after rising 24.8 percent year on year to 381,000
units in 2007. The company remained the country's fourth largest
automobile seller in 2007.
Its subcompact model QQ, known as the "Chinese Beetle", will
launch three new models this year.
The 11-year-old company, based in the city of Wuhu, plans to
raise its annual output to one million vehicles by 2010.
Its exports, which jumped 132 percent to 119,800 units in 2007,
were expected to rise to 180,000 this year.
The flag-bearer of Chinese indigenous brands has accelerated its
expansion overseas in recent years, with its exports topping all
other domestic rivals for five consecutive years.
(Xinhua News Agency February 11, 2008)
