Re: Chery business news
Chery Promotes Both Low- and High-end Cars
Tue. November 25, 2008
WUHU, Nov 25, 2008 (SinoCast Daily Business Beat via COMTEX) -- IRLCF | Quote | Chart | News | PowerRating -- Chery Automobile Co., Ltd. is building up a low-end brand Karry for passenger and cargo purposes, as well as a high-end brand for its joint venture project with Quantum under Israel Corporation, signaling a strategy change of the Chinese automaker from single brand to several brands.
Chery General Manager Yin Tongyue confirmed the news after attending the ceremony of signing a cooperative agreement with Thai Chery Yarnyon in mid-November 2008.
On the same day, he explained Chery's expansion strategy in China's second- and third-tier cities as follows: four new car models would be unveiled to customers in 2009 to support the country's boost of domestic demand. They would use new brands and distribution channels.
Meanwhile, Yin Tongyue described the progress of the company's venture project with Quantum by saying that the new high-end brand is likely to be released in next year's Auto Shanghai to be held from April 20 to 28, 2009.
The venture project is operated by Chery Quantum Automobile Co., Ltd., which was founded between the two parties with a registered capital of USD 500 million. It is expected to produce 150,000 vehicles per year upon completion in 2009. According to former information, Chery and Quantum will respectively hold a 55% and 45% stake in the venture.
Currently, the management team for the high-end brand has been formed, and surveys and investigations oriented to market and customers are being carried out. The brand, differing from former brands in design, will use the same platform as theirs.
Actually, Chery has released several new car models in the second half of 2008. On November 18, its M14 sports car and an open limousine specially designed for welcoming Zhai Zhigang, Liu Boming, Jing Haipeng, cosmonauts of Shenzhou VII, China's third manned spacecraft, debuted on the Auto Guangzhou.
The limousine is an upgraded version of Chery Cross Eastar, with improvements in stability, comfort, and interior trims, while M14's designer is Pininfarina's Mr. Catia, whose works include world famous Maserati.
The new sports car can install CheryPower 1.6CBR and 2.0CBR engines, and provides manual transmission and continuously variable transmission (CVT) for the choice of customers. Its shape caters to white-collars' interest in sport and leisure.
Chery's dream is to produce high-quality sports cars that are affordable to Chinese customers. The release of M14 will surely help speed up its pace towards the diversification of its products.
http://www.tradingmarkets.com/.site/news/Stock News/2047668/