Israel Corp getting it on with Chery

We heard about this a few days via a Chinese auto news website, we didnt really know what to make of it at that stage. Then we saw that Western news agencies were picking up, we decided it was worth looking in to further. Seeing as Israeli Corps US unit, Quantum LLC, has bought into the unit can we see Chery cars being made in the USA? Will this effect the Dodge-Chery deal at all? China Car Times will keep on watching!

BEIJING (MarketWatch) — China’s Chery Automobile Co. plans to set up a car manufacturing joint venture with holding company Israel Corp.’s  U.S. unit, Quantum LLC, a senior executive at Chery said Thursday.

“We’re still going through the procedure for getting the (Chinese) government’s approval,” Jin Yibo, a company spokesman and director of Chery’s president’s office, told Dow Jones Newswires.

The planned joint venture will likely produce a few models, including some higher-end automobiles, he said. Jin is also a vice president at Chery Automobile Sales Co.

Chinese state media reported Thursday that Quantum agreed to set up a CNY5.8 billion joint venture to make Chery-branded cars for sale in China and for export to the U.S.

Quantum will take a 45% stake in the venture, with the rest to be held by Chery, according to the reports, which cited an announcement from the government of Wuhu, Anhui province, where Chery is based.

Ash

Ash came to China at 18 on a whim and never left. Some 10 years later he collected a degree and a family along the way and now focuses his time on watching the Chinese car industry develop. He has witnessed the market change from being minor backyard market in to the world's biggest and most important market for all car manufacturers. You can contact or connect with him via Linkedin by clicking the 'Website' link.

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