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Chery Automobile
"Chery" redirects here. For similar words, see Cherry (disambiguation) or Cherie (disambiguation).
Chery Automobile (in Chinese: 奇瑞汽车; English pronunciation: [ˈʃɛɹiː]) is an automobile manufacturer in China. In Pinyin it is "Qirui" and its English transliteration should have been "Cheery" but there was a mistake in the transliteration process and it was decided by the company to not correct the error.[citation needed] It is owned by the local government of Wuhu (but is scheduled to be privatized), and sold about 305,000 vehicles in 2006. It is the largest independent Chinese auto manufacturer and one of the fastest growing automakers in the world.


History

Early years
Chery was founded in 1997 to prop up the economy of Wuhu, a region of China that has received little industrial development. Its first factory used machines and engine technology purchased from Ford Europe for US$25 million. It began auto production in 1999 using a licenced chassis from SEAT's Toledo. The company was an illegitimate company under Chinese law of the time and had to be registered as a "Car Parts Supplier." Thus, the company was not able to obtain a license to sell their cars in all of China. In 2001, Shanghai Automotive Industry Corporation (SAIC) bought a 20% stake in the company, allowing Chery to use SAIC's national retail sales license. In 2001, Chery began exporting its cars to Syria, becoming China's first car exporter. Chery also received its ISO-9001 certification. In September 2002, Chery received its ISO/TS 16949 certification, the highest quality certification at the time.


2003 to present
In 2003, Chery founded a research and development organization, and began working with foreign consultant firms to improve its technology and quality. In its relentless pursuit of quality, Chery hired a Japanese engineer from Mitsubishi to head Chery's Lean/Six Sigma production systems, which were first applied to their cars in 2003. They adopted DURR Paint Systems in their paint shop in 2004, becoming one of only 5 factories in the world to have this advanced paint system. SAIC sold its stake back to Chery in 2004 due to rising tension between Chery and its other partners General Motors and Volkswagen

In 2005, Chery was upgraded to ISO/TS 16949:2002 production quality, the highest and strictest quality control system in the global auto industry. They also began working with Malcolm Bricklin's company, Visionary Vehicles, hoping to be one of the first Chinese automobiles sold in the United States. The plan was to import five new car lines. Bricklin planned to have 250 dealers in the United States selling 250,000 cars a year by 2007. However, after 2 delays and various disagreements over finances and car design, the deal broke down. Instead, Chery is pursuing its own export plans and is designing a large array of cars for the American and European market and Chinese market. Aesthetic design is being aided by Bertone and Pininfarina of Italy known for their designs for Ferrari and Lamborghini. AVL of Austria is also working with Chery to produce 18 engines, including a turbodiesel, for the new line of cars. The new engine brand, called ACTECO, meets Euro IV emissions standards and uses advanced technologies such as aluminium alloy cylinder blocks/heads and direct fuel injection. Bosch is helping Chery to design modern transmissions. Lotus Engineering (known for their racing car chassis expertise) is aiding Chery in car design and quality. Ricardo Consulting Engineers is also devolping a hybrid powertrain for Chery for use on China's first hybrid vehicle.


Design copying controversy
Chery gained international notoriety over well-publicized illegal copying of foreign automobiles, namely General Motor's Korean subsidiary GM Daewoo Auto & Technology's Daewoo Matiz(sold as Chery QQ) city car and Daewoo Magnus(sold as Chery Eastar) mid-size sedan. Chery attempted to negotiate a local Chinese production licenses of those vehicles with bankrupt Daewoo Motors prior to General Motor's purchase of the bankrupt automaker's assets in 2002, but the negotiations were never closed. Nevertheless, Chery proceeded with the production of these former Daewoo vehicles without a formal license, triggering General Motors to sue Chery for copying in December 2004 citing "extreme similarities". GM Daewoo claimed their investigation results showed the Chery QQ shared a remarkably identical body structure, exterior design, interior design and key components. "Chery even used a camouflaged Matiz car to pass auto tests to acquire authorization from the government over production and sales of QQ." With the court's inability to come to decision, GM opted to drop its case in November 2005 to preserve its business interests in China. However, GM reserves rights to sue Chery again if it attempts to bring the vehicles in question to European and North American markets.


Production facilities
Chery produces most of its cars in China. In 2003, Chery built a plant in Iran, China's first foreign car plant, and at the Modiran Vehicle Manufacturing Company saw its QQ put into production in 2005. Also in 2005, another Chery plant became operational in Russia. Chery is planning to begin production in Malaysia in late 2006 and saw its cars being built at the former Daewoo Motor Egypt plant at Maddi, Cairo under the Speranza brand name. Chery has signed an agreement with Mauricio Macri-owned company Socma to form Chery Mercosur, a joint-venture which will produce the QQ and Tiggo in Montevideo, Uruguay from 2007 onwards. [1] After selling 1 million cars in the US, Chery intends to build a facility there as well.


Chery sales history
2000: ~2,000
2001: ~28,000
2002: ~50,000
2003: ~90,000 (8th in China)
2004: ~86,000 (10th in China)
2005: ~188,000 (5th in China)
2006: ~305,000 (3rd in China)
2007: ~392,000+ (Estimated)

Models

Out of production
2000–2006 Fulwin/Windcloud (风云) (codename A11) — 1.6L sedan

In production
2003– QQ3 (codename S11) — 0.8L & 1.1L city car
2003– Cowin/Flagcloud (旗云) (codename A15) — 1.6L sedan
2003– Oriental Son/Eastar (东方之子) (codename B11) — mid-size sedan
2005– Tiggo (瑞虎) (codename T11) — 1.6L & 2.0L & 2.4L compact SUV
2006– A5 (codename A21) — 1.6L & 2.0L sedan
2006– V5 (codename B14) — 2.0L & 2.4L minivan
2006- QQ6 (codename S21) — 1.1L & 1.3L city car
2006- Karry a small panel van.

Upcoming models
2006- codename A18
2006- codename S22
2007- codename S12
2007- codename T15
2007- codename B12
2007- codename S16
2007- codename B13
2008- codename M14
2008- codename P12
2008- codename F11
2008- codename B22


http://www.answers.com/chery


As we can see here Chery's main focus now is quality ranging from hiring a japanese engineer, most advanced painting system, advanced quality control system.

 

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What can I say about this president ?

Honest, low-profile, realistic, modest. This guy knows what he is doing.

 

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not anytime soon, chery is still reading Toyota's portfolio

 

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Chery stops growing in 2008, focus on quality

The biggest issue with Chinese automobiles right now is overall quality. Its the small things such as ill fitting interior plastics, cheap plastics, and poor choice materials that lets down various marques, but Chery wants to rectify those problems according to Automotive News China:

SHANGHAI — Chery Automobile Co., long the fastest growing Chinese automaker, stopped growing in the first half of this year.

Can it still become a world-class automaker, a goal its president Yin Tongyao set late last year?

Yes. Actually, the company now has a much better chance to succeed than ever before.

Passenger vehicle sales in China reached 3.6 million units in the first six months, up 17.1 percent year-on-year. By contrast, Chery’s sales, about 208,000 units, barely changed from a year ago.

Chery is obviously losing market share. But that is because the company has put the quality of its products before their quantity and halted new model launches since October last year.

Chery was incorporated in March 1997. In August 2007, it became the first domestic automaker to produce 1 million units. That’s remarkable growth, indeed. But it also came at a cost.

While aggressively expanding production, the company compromised a key aspect of sustainable growth: product quality.

Fortunately, Chery’s managers realized that changes were necessary.

They know that without good product quality, Chery can only make a profit of about 500 yuan ($74) by selling a car, as Yin famously once said.

They also realized that without quality, the deal they signed with Chrysler LLP won’t lead anywhere.

To make its next new model, the A3 mid-sized sedan, a fine product, Chery has repeatedly postponed its launch. Meanwhile, with Chrysler’s request help, Chery is making consistent improvements to the vehicle that it plans to sell in the United States with a Chrysler badge.

Also, Chery’s joint venture project with Israeli investment company Quantum is well underway. The new venture mainly targets the international market.

Chery is also cooperating with more global suppliers, such as ArvinMeritor and Continental, for high quality parts.

True, Chery may be still a thousand miles from becoming a world-class player. But the company is making progress.

Chery put four new models into sales in the first nine months of 2007. But no new model has been launched since.

 

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Very detailed history of Chery from China Car Times


Chery Automobile
Chery Automobile is a car manufacturer in China. In Pinyin (Pinyin being the romanization of Chinese characters) it is “Qi rui” and its English translation should have been “Cheery” but there was a mistake in the translation process and it was decided by the company to not correct the error. It is owned by the local government of Wuhu (but is scheduled to be privatized), and sold about 188,000 vehicles in 2005. Although ranks the 5th in among the “Big Five” auto makers in China in 2005, it is projected to rise to the 2nd place by 2006, surpassing Dongfeng Motor Corporation, Shanghai Automotive Industry Corporation, and Chang’an Motors, only to be surpassed by the First Automobile Works.

Chery was founded in 1997 to prop up the economy in remote Wuhu, a region of China that received little industrial development. Its first factory used machines and engine technology purchased from Ford Europe for US$25 million. It did not begin auto production until 1999 using a licenced chassis from SEAT’s Toledo. The company was an illegitimate company under Chinese law of the time and had to be registered as a “Car Parts Supplier.” Thus, the company was not able to obtain a license to sell their cars in all of China. In 2001, Shanghai Automotive Industry Corporation (SAIC) bought a 20% stake in the company, allowing Chery to use SAIC’s national retail sales license. In 2001, Chery began exporting its cars to Syria, becoming China’s first car exporter. Chery also received its ISO-9001 certification. In September 2002, Chery received its ISO/TS 16949 certification.

In 2003, Chery founded a research and development organization, and began working with foreign manufactures to improve its technology. Chery was sued by GM Daewoo for illegally replicating the Chevrolet Spark (also known as Daewoo Matiz). Chery claims that they licensed the vehicle design prior to General Motors’ purchase of Daewoo, but Chery’s claims are unsubstantiated, with Chery’s failure to disclose a license contract that Chery claimed to have signed with Daewoo Motors prior to its sales to GM. The copied vehicles are Daewoo Matiz (Chery QQ) city car and Daewoo Magnus (Chery Eastar) mid-size sedan. Chery’s replicated Daewoo vehicles remain inferior to original Daewoo vehicles sold under Chevrolet brand according to J.D. Power’s 2005 Chinese Initial Quality Survey. Additionally, they scored much worse in crash tests. However, they are 25% cheaper and come with more standard features. In its relentless pursuit of quality, Chery hired a Japanese engineer from Mitsubishi to head Chery’s Lean/Six Sigma production systems, which were first applied to their cars in 2003. Chery began production of it first self-designed engine in 2004, just one year after development began. They also adopted DURR Paint Systems in its paint shop in 2004. SAIC sold its stake back to Chery in 2004 due to rising tension between Chery and its other partners General Motors and Volkswagen

In 2005, Chery was upgraded to ISO/TS 16949:2002 production quality, the highest and strictest quality control system in the global auto industry. They also began working with Malcolm Bricklin’s company, Visionary Vehicles, to be one of the first Chinese automobiles sold in the United States. The plan calls for five new car lines to be imported. The cars would include a basic, inexpensive model, a larger sedan, a sporty coupé, a sport utility vehicle, and a sport wagon. Aesthetic design would be handled by Bertone and Pininfarina of Italy known for their designs for Ferrari and Lamborghini. AVL of Austria is also working with Chery to produce 18 engines, including a turbodiesel, for the new line of cars. The new engine brand, called ACTECO, meets Euro IV emissions standards and uses advanced technologies such as aluminium alloy cylinder blocks/heads and direct fuel injection. Bosch will produce some of the transmissions. Lotus Engineering (known for their racing car chassis expertise) is aiding Chery in car design and quality. Ricardo Consulting Engineers Ltd is also devolping a hybrid powertrain for Chery. Bricklin plans to have 250 dealers in the United States selling 250,000 cars in 2008. In March 2005, Chery received an export credit from China’s Export and Import Bank of 5 billion yuan (US$605 million) to begin trading overseas. Chery also received a 2.4 billion yuan (US$290 million) loan from the China Development Bank to further finance its research and development. Chery has also attracted Western suppliers to Wuhu, including Tower Automotive, Siemens, and TRW. Delphi will also supply parts for Chery’s vehicles. In 2006, billionaire George Soros invested $200 million into Visionary Vehicles which will later be reinvested into Chery. The vehicles will not use the Chery name in the United States as General Motors felt it was too close to the nickname Chevy, derived from its wholly owned subsidiary Chevrolet. Visionary hired Pierre Gagnon from Mitsubishi Motors North America as Chief Operating Officer in March 2005, only to terminate his employment one month later. Gagnon felt that Visionary should be headquartered in California, while Bricklin wanted to keep the company in New York. As of June 2006, 75 dealers have committed $4 million to receive Chinese cars sometime in 2009.

By 2006, Chery was exporting to 29 countries. It is expected that the Chery QQ will hit the markets in Europe in late 2006, the introduction price is expected at €5000, making it the cheapest car in Europe together with the Dacia Logan. On May 4th 2006, it was announced that Chery would form an alliance with China Automotive Systems. The joint venture company, under the name of Wuhu Henglong Auto Steering Systems WHAS, will be based in Wuhu, Anhui, near Chery Auto’s headquarters. Under the terms of the agreement, the total investment in the joint venture is 50 million RMB (approximately USD 6 million). China Automotive Systems and Chery Auto will have 77.3% and 22.7% shares respectively in the joint venture. Upon the completion of facility construction in 2007, WHAS is expected to reach a total production capacity of 300,000 sets of power steering systems and components annually. Most products of the joint venture will be supplied to Chery Auto. Once this new facility is operational, Chery Auto will also invest in a second factory in Pakistan to increase the exports to other parts of the world. However, with the new facility in Wuhu, China Automotive Systems will also commence developing sales to China’s eastern market. Chery engines began export to North America in early 2006 with plans to begin export to Europe in 2007. It is also rumored that Chery is planning an IPO either in 2006 or 2007. In mid 2006, Chery purchased a failing commercial vehicle manufacturing facility from China’s First Automotive Works. They intend to start production of their first branded commercial vehicles in 2008 and aiming for an annual output of 300,000 vehicles a year by 2010.

Chery produces most of its cars in China. In 2003, Chery built a plant in Iran, China’s first foreign car plant, and at the Modiran Vehicle Manufacturing Company saw its QQ put into production in 2005. Also in 2005, another Chery plant became operational in Russia. Chery is planning to begin production in Malaysia in late 2006 and saw its cars being built at the former Daewoo Motor Egypt plant at Maddi, Cairo. Chery has signed an agreement with Mauricio Macri-owned company Socma to form Chery Mercosur, a joint-venture which will produce the QQ and Tiggo in Montevideo, Uruguay from 2007 onwards. [1] After selling 1 million cars in the US, Chery intends to build a facility there as well.