Re: Chery business news
A new, determined Chery reestablishes in PH
January 11 2011
MANILA, Philippines—It was a case of déjà vu as this writer found himself once again in Wuhu, a prosperous industrial city 400 kilometers west of Shanghai in China on a cool December day.
Nothing much has changed since this writer first visited Wuhu in 2007. Here, you are much more likely to encounter a vehicle made by Chery Automobile Co. or meet an individual working for this Chinese automaker, which is one of Wuhu’s biggest employers.
In this city roughly the size of five Metro Manilas, Chery Automobile owns four vehicle manufacturing plants, two engine manufacturing plants and two transmission plants within the automaker’s vast 725 hectare property.
As China’s largest independent auto producer and exporter (meaning, unlike its Chinese counterparts that are either state-owned or have made joint venture with any of its foreign counterparts like what Shanghai Volkswagen, FAW Volkawagen or Shanghai General Motors did), Chery Automobile produces a staggering 900,000 vehicle units a year, 900,000 engine units a year as well as 450,000 transmission units a year.
Baffling
Considering the company is one of China’s most successful automakers (in China, it sold more than 700,000 units in 2010 and is expected breach the 1 million mark this year) as well as top exporters (selling the Chery brand to more than 70 countries and territories around the world), it is quite baffling why the Chery brand hasn’t made a significant headway here in the Philippines?
“In 2007, Chery Automobile entered the Philippine market at a time when the company was just starting to export its cars to other parts of the world. Experience was one thing it hasn’t yet to gain. The company soon realized it needed a different strategy in order to succeed outside China,” said Dr. Chang Si-Chung, CEO of Chery Motors Philippines Inc., the new group that will handle the Chinese automotive’s activities here in the country.
This time, Chang relates that CMPI will be taking small steps but will ensure that each one would be more firmly rooted.
“We have learned so much from the debacle of the previous group. This time, the Chery brand will be managed by a new and determined team, with fresh strategies that will focus more on building up the the brand that has been trusted in China and other parts of the world. The new team will give more emphasis on the after sales support and services as well as the improving its dealer network rather than how many units it could sell each month,” said Chang.
Assembly plant
Chang informed that as CMPI formally takes over the brand’s distributorship here in the Philippines (which was previously held by Iseway Motors Philippines), the team will be moving to its new corporate headquarters in Las Piñas City, a strategic decision to be closer to Sta. Rosa, Laguna where it is planning to set up its assembly plant.
This new Las Piñas office will house the company’s technical training and service area, a parts warehouse and is currently building a new, state-of-the-art pre-delivery inspection (PDI) facility.
“CMPI will continue to sell Chery’s current model line-up that has been known for its affordability, including the Chery QQ mini-car and the Tiggo SUV. This year, we are poised to launch the all-new Chery A113 which will be sourced initially from Taiwan and at the same time, relaunch the upgraded V213 mini-van,” shared Raymond Tribdino, VP for Marketing and Sales and soon director for Philippine assembly operations.
http://business.inquirer.net/money/...07/A-new-determined-Chery-reestablishes-in-PH