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SHANGHAI -- A new joint venture of Chery Automobile Co. and Israeli investment company Quantum will manufacture Chery-designed vehicles and target international markets.
On Feb. 19, Chery Quantum Auto Co. was officially unveiled in Wuhu in eastern China's Anhui province. Chery owns 55 percent of the venture and Quantum owns the rest.
With annual capacity of 150,000 vehicles, the venture is slated to start production at the end of 2009 in a new factory near Chery's existing plants in Wuhu.
It plans to manufacture compact and mid-sized vehicles, including sedans, SUVs and hatchbacks, says Volker Steinwascher, vice chairman and CFO of the joint venture. Its first car will be a four-door sedan similar to Chery's A6, says Steinwascher.
All vehicles of the new venture will be sold under a new brand to be disclosed at a later stage.
Chery is currently the largest car exporter among Chinese automakers. Its main overseas markets include Russia, the Middle East and North Africa. Wang Wei, Chery's communications manager, says the joint venture with Quantum will mainly target overseas markets.
Eventually, the company wants to export to Europe and North America, but not until its cars meet the safety and quality demands of Western consumers, says Steinwascher.
Steinwascher notes the new venture will avoid repeating the mistake that other Chinese car companies have made of rushing into markets with cars that don't meet high standards.
Located in Wuhu, Chery is one of China's leading auto manufacturers. It exported more than 118,000 vehicles in 2007. Quantum is a subsidiary of the Israeli enterprise group Israel Corp. |
