The biggest domestic automaker in
China, Chery, is planning a venture
with an Israeli partner – Israel Corp.
- to make sedans and sport utility
vehicles.
These vehicles would be exported to
the United States, reports said. The
car maker already has its vehicles
exported to developing countries.
Israel Corp. is a major Israeli
holding company, with investments in
chemicals, shipping, semiconductors
and energy.
The new venture, valued at 5.8 billion
yuan (US$750 million) will have the
partner Israel Corp investing US$225
million for a 45 percent stake. The
venture will explore the European and
US market, a news report said.
It may be recalled that Chery
announced an agreement last year with
DaimlerChrysler AG for the Chinese
company to manufacture small vehicles
for sale worldwide under the Chrysler,
Dodge or Jeep brand names.
It is learnt that the factory will be
set up in the eastern province of
Anhui will have the capacity to make
as many as 105,000 sedans and 45,000
SUVs a year. The company, which posted
sales of 305,200 vehicles, including
272,400 sedans in 2006, has set a
sales target of 390,000 vehicles for
this year. Of these, as many as 70,000
would be exported.
With the United States a potential
destination, the company says it hopes
eventually to export to the Americas
but has announced no timetable.
However, there are reports that the
Chinese automakers, including Chery,
would need to improve their technology
to meet US safety and environmental
standards..
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