Chery Launches Joint Venture with U.S. Company

By Brendan Moore

02.12.2008

Chery Automobile announced yesterday that it has established a joint venture with Quantum LLC, a U.S. subsidiary of Tel Aviv-listed Israel Corp.

The joint venture is expected to serve as a possible springboard into the European and U.S. markets.

Quantum LLC funded a 45 percent stake in the new entity for approximately $225 million USD. Chery’s part of the deal is mainly technology and land, and that gets them a controlling 55 percent. The terms of the joint venture call for a total investment of $1.5 billion USD.

The joint venture, named Chery Quantum Automobile, has already registered with the appropriate government agencies in east China’s Anhui Province, according to sources from Chery. The new company, Chery Quantum Automobile, is scheduled to kickoff production in 2009 and forecasts production of 150,000 vehicles a year.

A Chery spokesman stated that this joint venture marks the first time a Chinese automaker will provide technology as opposed to capital in order to form an active partnership with a foreign company.


Chery, one of the best players in the Chinese auto industry, will almost certainly sell close to a half-million units this year, its 11th year of existence. The fourth-largest automaker in China will launch another three models off their popular QQ model, their biggest seller by far.

Chery exports more cars than any other Chinese manufacturer. Their exports in 2007 shot up another 132% to almost 120,000 in 2007, and are expected to push past 180,000 in 2008.

COPYRIGHT Autosavant.net – All Rights Reserved

Author: Brendan Moore

Brendan Moore is a Principal Consultant with Cedar Point Consulting , a management consulting practice based in the Washington, DC area. He also manages Autosavant Consulting, a separate practice within Cedar Point Consulting. where he advises businesses connected to the auto industry. Cedar Point Consulting can be found at http://www.cedarpointconsulting.com.

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2 Comments

  1. Great, can’t wait for Chinese cars to get here. Yeah, I’m waiting for that, alright.

  2. If that QQ could meet crash and emissions requirements in the the U.S., I bet they would be able to sell quite a few of them here. If the price has to go up $2000 in order to do that, it still way under $10,000, right? For a brand new car that gets great gas economy? And it’s cute. How could you not sell a bunch of them, huh?

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