Chery Launches Joint Venture with U.S. Company
By Brendan Moore
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.
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