Automotive News - 2008 Guide to China's Auto Market - (Page 23)

DOMESTIC AUTOMAKERS Chery Automobile Co. No. 8 Changchun Road, Economic-Technological Development Area Wuhu City, Anhui Province 241009, P.R. China (86) 553-5923-805, www.chery.cn Top executive: Yin Tongyao, president & general manager Chery Automobile Co. dreams of selling vehicles in North America and Europe. But first it needs to make its cars safe and reliable and rid itself of a cheap-car image. Slower growth should give Chery breathing room to change. Chery grew by 22.1 percent in 2007, well below its 57.6 percent growth in 2006. “Chery already has a certain volume. That gives them time to really slow down,” says Yale Zhang, director of emerging markets vehicle forecasts at CSM Worldwide. “Now Chery is turning its attention to issues of strategy, marketing and quality.” Yin Tongyao, Chery’s president, says that quality, not quantity, is Chery’s main focus. “North America and Europe have very tough and demanding safety and emission laws that our vehicles do not represent yet,” Yin says. “Overall, the quality of the Chinese supply base is improving, but it is not as good as it should be.” To improve quality, says Yin, “Chery is 2007 2006 23 Models produced: QQ, A520, Easter, New Qiyun, Tiggo, Easter Cross, V2, Karry Ownership: Chery Automobile Co. 100% Capacity Production Unit sales 530,000 387,312 369,459 350,000 307,232 302,478 CHERY A3 sourcing more and more from global suppliers.” Global suppliers, of course, are keen to take advantage of Chery’s anticipated growth and have flocked to Chery’s hometown, Wuhu. ArvinMeritor Inc., Tower Automotive LLC and Johnson Controls Inc. have joint ventures with Chery in Wuhu. In late 2007 Chery opened its third car plant in Wuhu. The plant boosts Chery’s annual capacity by 300,000, to 700,000 vehicles. Including exports, Chery’s sales reached 489,259 units in 2007, just shy of Shanghai General Motors’ domestic sales in China. By working with experienced global automakers such as Chrysler LLC and Fiat Auto S.p.A., Chery is further strengthening its operations. Phil Murtaugh, Chrysler’s Asia chief, says Chrysler’s deal with Chery is a “25-year, broad, long-term strategic cooperation.” For Chrysler, Chery will produce a small car for South America by mid-2008. Chery declines to comment on the expected date for entry into North America. For Fiat, Chery is expected to assemble kits of the Linea, Grande Punto and Alfa 159 beginning in early 2009. Full localized production of the three cars is expected to begin in late 2009. — Namrita Chow BASF offers intelligent solutions worldwide for the automotive industry. Whether for powertrain and chassis, environment, interior, exterior, electronics or safety – top quality and customer-oriented innovations form the basis of long-term partnerships for mutual success. www.automotive.basf.com Passion for the Automotive Industry Powertrain & Chassis Environment Interior Exterior Electronics Safety http://www.chery.cn http://www.automotive.basf.com http://www.automotive.basf.com

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