Chery QQ6
Chinese carmaker Chery, which is on an ambitious growth path both at home and abroad, has teamed up with U.S. finance company Quantum to set up a new production facility here in the carmaker's home city. Production will start in about 2009.
The $734-million investment will let Chery put new models into production sooner than had been expected. Chery just introduced its new A6 and an updated version of its Tiggo SUV at Auto Shanghai last month. Quantum LLC is a subsidiary of an Israeli holding company, the Israel Group, which has interests in chemicals, shipping, oil and energy.
Chery plans to produce 105,000 luxury sedans and 45,000 SUVs per year, mostly intended for European and North American export markets. With the new plant, Chery's total capacity will reach 500,000 units a year.
The plan is still subject to Chinese government approval, but it could be another major step for Chery to become an international force to be reckoned with. It set up an engine-supply partnership with Fiat that may be extended to other areas. Another venture with Iran Khodro, Iran's biggest carmaker, will eventually see local production of more than 60,000 Chery cars.
