Chery

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Chery Automobile Co Ltd
Type Government-owned corporation
Industry Automotive
Founded March 18, 1997 in Wuhu, Anhui Province, China
Headquarters Wuhu, Anhui Province, China
Key people Yin Tongyue, Chairman
Products Automobiles
Website cheryinternational.com

Chery Automobile Co Ltd[1], is a state-owned[1] automobile manufacturer in the People's Republic of China. It has been the seventh-largest China-based automaker measured by unit production for at least two years running.

Contents

[edit] Models

[edit] List of Chery models


Return to the Main Page


[edit] History

Founded as a state-owned enterprise in 1997, auto production commenced in 1999[1] using a chassis licensed from Volkswagen's SEAT Toledo.[2] Early production may have been technically illegal, as the company was only awarded a passenger car production license in 2003; until that year it may have piggybacked on a SAIC Group license.[3]

In 2009 Chery produced 508,500 units,[4] although by that time it probably had a per-year production capacity of 650,000.[5] More than 400,000 of its 2009 sales were sedans.[6] Production capacity figures may consider engines and vehicles as discrete.

Chery became the 7th most-productive Chinese vehicle manufacturer in 2010, selling nearly 700,000 units.[7] In the first 11 months of 2011, production reached 578,400 units and Chery still holding on to their seventh position in the Chinese market.[8]

[edit] Operations

[edit] China

Chery has several production bases in China,[9] and at least one in its home province of Anhui,[10] probably in Wuhu City.[11] As of 2007 the company had two auto-making production bases, two engine-making bases (the No.2 base having built ACTECO-branded engines and being "highly automated"), a gearbox production base, and two units presumably tasked with R&D.[9] Another car-making production base should have become operational by early 2008.[9] A Dalian, Liaoning province, base will be finished by the end of 2011.[11]

An R&D centre exists and may be located in Wuhu, Anhui province, as this is where the company is based.[12]

Chery has a handful of Sino-western joint ventures, most with component manufacturers such as Arvin Meritor, Johnson Controls[13] and PPG Industries.Template:Citation needed.

[edit] Other

There are many small factories in developing countries manufacturing Chery models. These factories build from either complete or semi-complete knock-down kits and, with the exception of an Argentinian cooperation[14] and an Iranian factory,[15] are not necessarily owned by or affiliated with Chery. Sales of knock-down kits are an easy way for Chery to gain access to growing markets without added after-sales service costs.

Such overseas knock-down factories may spring up and disappear quickly. As of 2007 there were 14 overseas factories,[9] but by mid-2009 that number had dropped to ten[16] only to rise again to a projected 15 by the end of that same year.[17] As of the beginning of 2012, 13 operational factories produce Chery vehicles and an additional three should come online soon.[18]

These factories have appeared in Argentina, Egypt, Indonesia,[19] Iran,[15] Malaysia,[19] the Middle East,[14] North Africa,[14] Pakistan,[20] Uruguay,[19] Russia,[19] Taiwan,[17] Thailand, the Ukraine,[19] and Vietnam.[21] Besides the Ukrainian site another Eastern European site may exist.[14] This may be in Serbia, as Chery exhibited at a 2011 Belgrade auto show.[18]

[edit] Brazil

Chery has agreed to the construction of a Jacarei, Brazil, production base that should be finished by 2013 in a joint effort with the Government of the state of São Paulo.[22] In July of 2011 work commenced on an industrial park with a planned 150,000 unit/year production capacity.[18]

[edit] Egypt

Assembly of Chery cars from complete knock-down kits began in Egypt in 2004,[23] and as of 2011 in this country they are sold under the Speranza Motors brand name. and in this country they may be sold under the brand name Speranza Chery.[24][25] One Egyptian factory making Chery models from semi-complete knock-down kits had a 2009 production capacity of 30,000 vehicles/year.[26]

In 2011, Chery stated the part localization ratio for Egypt was 45%.[27]

[edit] Indonesia

As of 2011, Cherys will be manufactured and marketed in this country by a new local partner company, PT Karya Semesta Investama (KSI). KSI replaces the Indomobil Group as Chery's local partner.[28]

[edit] Iran

As of late 2007 Chery has a minority ownership in a joint venture with Iranian Khodro and Canadian Solitac as its partners. This JV controlled a knock down factory in Babol, Mazandaran. Making a QQ6 renamed the S21, it may be sold both inside and outside Iran[15] and carry a name other than Chery, as well.Template:Citation needed

[edit] Myanmar

As of May 2011, a 3,000 to 5,000 unit/year production facility is planned in the country.[18]

[edit] Russia

In Russia TagAZ produces Chery vehicles, but these usually carry non-Chery badges such as "Vortex".[29]

[edit] Taiwan

The Chery A3 is assembled since August 2009 in Taichung, Taiwan by Shengrong Auto, a subsidiary of Prince Motors, a Taiwanese car company.[17][30]

[edit] Thailand

As of late 2008 Chery exports semi-complete knock-down kits for assembly in Thailand.[31]

[edit] Turkey

A production site was planned to be raised in the province of Sakarya, in a collaboration with the local Chery dealer, Mermerler Otomotiv.[32]

[edit] Ukraine

Chery Automobile is a partner of ZAZ since 2006[33] and manufactures from CKD kits some of its vehicles in the plants from Zaporizhia and Illichivsk. Since February 2011, the Chery A13 is manufactured on full-scale in Ukraine, where it is sold rebadged as the ZAZ Forza.[34]

[edit] Uruguay

Affiliated Argentinian company SOCMA Group[14] manufactures some of the Chery vehicles in the Oferol factory from Barra de Carrasco, Canelones, Uruguay.[35] The Chery Tiggo was officially launched in Uruguay in October 2007.[36][37]

[edit] Venezuela

First introduced to this country in mid-2006, Chery vehicles continued to be the only licensed Chinese car exports to Venezuela as of 2011.[27] Opened in September 2011, a new Chery production site in the north-central state of Aragua, owned by the ZGT joint venture, produces the A1 and A3 models.[38]

[edit] Products and services

[edit] Vehicles

As of 2009, Chery products sell under at least four brand names. These include Karry, Rely, Riich, and its own.[39] Vehicles adapted to the European Union standards are sold in Italy through the DR Motor company.

Chery makes cars, minivans, and SUVs. The parts used in their manufacture may be foreign designed, and some may be imported; Chery has cooperative agreements with many foreign component firms, including the American ArvinMeritor,[40] American Autoliv,[41] American Delphi Automotive,[41] the Australian company Futuris,[41] German Robert Bosch GmbH,[40] American PPG Industries,[40] German Siemens VDO,[40] French Valeo,[40] and the American Visteon.[42]

Some have helped Chery establish a local supply chain.[40]

[edit] Engines

The company makes and has exported engines under the brands ACTECO and CAC. Chery engines have been bought by Fiat and exported to the US.[9][43]

[edit] Domestic after-sales service

The company has a customer service network that spans at least 31 Chinese provinces, autonomous regions, and direct-controlled muicipalities.[44][45]

[edit] Electric vehicles

File:Chery m1 ev.jpg
An electric Chery Riich M1 at the 2010 Kuala Lumpur International Motor Show

Like many Chinese automakers, Chery wants to produce electric vehicles in the future. The company currently offers a few hybrid and full-electric models, and it has established a tentative agreement with a foreign company for mass-production. China subsidies oil (an incentive for the State to encourage use and manufacture of electric cars),[46] and some of its automakers see opportunities in less mature electric vehicles because Western companies have yet to develop much of a lead in the technology.[47]

[edit] International cooperation

Chery and Quantum LLC, an Israel Corp subsidiary, formed a joint venture in 2007 to build electric cars. A proposed production base for this JV may be built in Changshu, Jiangsu province, becoming operational in 2012.[48]

Another company, the American Better Place, signed a 2010 MoU with Chery for the development of prototype electric vehicles to be used in its pilot projects.[49]

Chery Auto and Magna Steyr, a division of the Canadian manufacturer Magna International, are cooperating to develop three models of the Qoros brand for sale in Europe, reports Motoren in Sept 2011. The new car will be developed by Magna for production in Changshu near Shanghai.[50]

[edit] Electric models

In 2009 Chery announced it had built an all-electric car, the S18.[51]

In early 2009 the company showed an all-electric Chery Riich M1 to journalists.[5] This car, also referred to as the S18, may have entered production in 2010.[12]

As of 2011 the company continued to pour R&D dollars into this area,[52] and offers three hybrid and two all-electric models.[53] Its hybrid models may use a start-stop system solely.

[edit] Motorsport

Chery participated in the 2010 and 2011 Dakar Rally, racing with Rely X5 SUVs in both editions.[54][55]

[edit] Safety record

An informal, 2007 Russian crash test yielded a poor score for a Chery model named the Amulet, but a later test on Chinese soil saw this model, sold on the Russian market, far better.[56]

The 2009 A3 received a five-star safety rating in C-NCAP, the Chinese new car safety tests,[57] becoming the first indigenous car to achieve such a high-test rating.[45][58]

[edit] Controversies

[edit] Copying claims

In June, 2003, American company General Motors sued Chery accusing it of copying the [[Daewoo Matiz#First generation|first generation Daewoo Matiz (developed by a GM subsidiary, GM Daewoo) in its design for the Chery QQ.[59] General Motors then went on to accuse Chery of using a disguised Matiz in a crash test for the Chery QQ.[60]

GM executives claimed design duplication, with many parts interchangeable between the QQ and the Matiz,[61] and GM China Group stated the two vehicles, "shared remarkably identical body structure, exterior design, interior design and key components."[62]

While some Chery cars are not copies, such as the Pininfarina-designed A3,[63] the QQ may not be the sole Chery model that wears famous-name designs; the Chery Tiggo is criticized for resembling the second generation Toyota RAV4.[64] Other model using the Matiz technology found in the QQ include the closely related QQ6. The Eastar and its derivatives (V4, B12, and B22) have also been considered to be copies, of the Daewoo Magnus.[65]

[edit] References

  1. 1.0 1.1 1.2 "Overview". Chery Automobile. http://www.cheryinternational.com/company.php. 
  2. Li, Wei (May 19, 2008). "Yin Tongyue: There's no myth to cars (qiche meiyou shenhua)" (in Chinese). Sanlian Lifeweek (sanlian shenghuo): pp. 56–61 
  3. Chang, Crystal (2009-08-13). "Developmental Strategies in a Global Economy: The Unexpected Emergence of China’s Independent Auto Industry". pp. 13. http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1450117. 
  4. "2009?????????90??". Xinhuanet. 2010-01-29. http://midchina.xinhuanet.com/2010-01/29/content_18904333.htm. 
  5. 5.0 5.1 "Young, Confident, Progressive - Overseas Media Speak Highly of Chery’s Internationalization". Chery Automobile. 2009-04-29. http://www.cheryinternational.com/2009autoshanghai/news_details_9.html. 
  6. "2009 Chinese Auto Sales". Nitrobahn. 2010-01-20. http://www.nitrobahn.com/news/2009-chinese-auto-sales-shanghai-volkswagen-leads-gm-trails-right-behind/. 
  7. "China Car Market 101: Who Makes All Those 18 Million Cars?". The Truth About Cars. 2011-01-19. http://www.thetruthaboutcars.com/2011/01/china-car-market-101-who-makes-all-those-18-million-cars/. 
  8. "2011?1-11??????????????". China Association of Automobile Manufacturers (CAAM). 2011-12-16. http://www.caam.org.cn/zhengche/20111216/0905065763.html. 
  9. 9.0 9.1 9.2 9.3 9.4 "Ten-Years Innovation, One Million Chinese Cars". Chery Automobile. 2007-08-21. http://cheryinternational.com.s11770.gridserver.com/en/node/86. 
  10. "Rating the Chery". The Wall Street Journal. 2007-08-25. http://online.wsj.com/public/article/SB118799883677508444.html. 
  11. 11.0 11.1 "Chery Auto Breaks Ground on Dalian Plant". Chery Automobile. 2009-10-15. http://cheryinternational.com.s11770.gridserver.com/en/node/444. 
  12. 12.0 12.1 "Chery's First High-speed BEV S18 Passed National Collision Test". Chery Automobile. 2009-08-31. http://cheryinternational.com.s11770.gridserver.com/en/node/258. 
  13. "Joining Hands with Arvin Meritor, Chery More Confident of Internationalization". Chery Automobile. 2007-07-26. http://cheryinternational.com.s11770.gridserver.com/en/node/77. 
  14. 14.0 14.1 14.2 14.3 14.4 "A Chinese Independent Brand Seizes the First Bridgehead in Latin America". Chery Automobile. 2007-03-31. http://cheryinternational.com.s11770.gridserver.com/en/node/67. 
  15. 15.0 15.1 15.2 "Chery, Iran Khodro and Canada Solitac Enter into an Agreement of Joint Venture". Chery Automobile. 2007-08-09. http://cheryinternational.com.s11770.gridserver.com/en/node/83. 
  16. "Chery, the Only Automaker Listed Among Top 200 Chinese Exporters". Chery Automobile. 2009-06-18. http://cheryinternational.com.s11770.gridserver.com/en/node/255. 
  17. 17.0 17.1 17.2 "Chery A3 Produced in Taiwan". Chery Automobile. 2009-08-20. http://cheryinternational.com.s11770.gridserver.com/en/node/257. 
  18. 18.0 18.1 18.2 18.3 "Growth 2011--Chery International Makes New Leap". Chery Automobile. 2011-12-30. http://www.cheryinternational.com/viewNews.php?id=74. 
  19. 19.0 19.1 19.2 19.3 19.4 "Oversea factories". Chery Automobile. http://cheryinternational.com.s11770.gridserver.com/en/node/125. Retrieved 2011-03-11. 
  20. "Chery Signs Agreements with New Pakistan Distributor". Chery Automobile. 2010-11-03. http://cheryinternational.com.s11770.gridserver.com/en/node/999. 
  21. "Chery Officially Enters Vietnamese Market". Chery Automobile. 2009-04-22. http://cheryinternational.com.s11770.gridserver.com/en/node/252. 
  22. "Chery Plans Production Base in Jacareí, Brazil". ChinaAutoWeb. 2010-09-17. http://chinaautoweb.com/2010/09/chery-plans-production-base-in-jacarei-brazil/. 
  23. "Chery is Developing Fast Towards an International Brand". Chery Automobile. 2011-07-21. http://www.cheryinternational.com/viewNews.php?id=43. 
  24. "Chery enters Egypt as homemade representative". Chery Automobile. 2011-01-31. http://cheryinternational.com.s11770.gridserver.com/en/node/1009. 
  25. "Speranza Egypt". http://www.speranzaegypt.com/. Retrieved 2010-10-05. 
  26. "VIDEO : Chinese cars made in Egypt". Inside the Middle East. CNN.com Blogs. 2009-11-23. http://insidethemiddleeast.blogs.cnn.com/2009/11/23/video-chinese-cars-made-in-egypt/. 
  27. 27.0 27.1 "Venezuela firmly supports Chery". Chery Automobile. 2011-10-28. http://www.cheryinternational.com/viewNews.php?id=65. 
  28. "China's Chery Automobile Names New Agent in Indonesia". Asia Pulse (Rhodes). 2011-12-09. http://www.highbeam.com/doc/1G1-274494619.html. 
  29. "Russia: TagAZ Clones a Chery for the Vortex Estina". Edmund's Inside Line. 2008-09-05. http://www.insideline.com/chery/russia-tagaz-clones-a-chery-for-the-vortex-estina.html. 
  30. "Chery crosses Straits to assemble its A3". China Daily. 2009-06-29. http://www.chinadaily.com.cn/cndy/2009-06/29/content_8331491.htm. 
  31. "Chery Officially Enters Thai Market". Chery Automobile. 2008-11-13. http://cheryinternational.com.s11770.gridserver.com/en/node/104. 
  32. "Chery Auto to invest $500 mln in new Turkey plant". Gasgoo. 2010-11-07. http://autonews.gasgoo.com/china-news/chery-auto-to-invest-500-mln-in-new-turkey-plant-101107.shtml. 
  33. "AvtoZAZ: Partners". AvtoZAZ. http://www.avtozaz.com/en/about/partners. Retrieved 2011-05-12. 
  34. "??? Forza: ????? ???????" (in Russian). Autocentre. 2011-02-16. http://www.autocentre.ua/ac/Auto/Test-Drive/ZAZ-Forza-18484.html. 
  35. "Chery becomes China’s first automaker with exports of over 500,000". Chery Automobile. 2011-04-26. http://www.cheryinternational.com/viewNews.php?id=28. 
  36. "The Chery Tiggo3 Officially Launched in Uruguay". Chery Automobile. 2007-10-14. http://cheryinternational.com.s11770.gridserver.com/en/node/92. 
  37. "Ramping up Business in Brazil, Chinese Chery Deeply Exploiting South American Auto Market". Chery Automobile. 2009-09-03. http://cheryinternational.com.s11770.gridserver.com/en/node/260. 
  38. "Chery holds ceremony for new Venezuelan factory". Gasgoo. 2011-09-01. http://autonews.gasgoo.com/china-news/chery-holds-ceremony-for-new-venezuelan-factory-110901.shtml. 
  39. "Chery's "Outstanding 4+1" Pattern Exhibits the "Chinese Power"". Chery Automobile. 2010-04-23. http://cheryinternational.com.s11770.gridserver.com/en/node/857. 
  40. 40.0 40.1 40.2 40.3 40.4 40.5 "Chery, Valeo Join Hands to Develop Automobile Lighting Systems". Chery Automobile. 2011-11-22. http://www.cheryinternational.com/viewNews.php?id=70. 
  41. 41.0 41.1 41.2 "About Chery". Chery Motors Australia. http://www.cherymotors.com.au/default.asp?action=article&ID=21565. Retrieved 2012-01-01. 
  42. "Visteon to Invest in Subsidiary of Chery Technology, Strengthening Automotive Climate Capabilities in China". Visteon Corp. 2011-08-22. http://www.visteon.com/media/newsroom/2011/110822_story1.html. 
  43. "Fiat and Chery Reached an Agreement on Engine Purchase". Chery Automobile. 2007-08-05. http://cheryinternational.com.s11770.gridserver.com/en/node/81. 
  44. "Chery China". Chery Automobile. http://www.cheryinternational.com/chery-china.php. 
  45. 45.0 45.1 "A Deep Analysis on Chery A3 Winning the C-NCAP Five-star Safety Award". Chery Automobile. 2009-03-18. http://cheryinternational.com.s11770.gridserver.com/en/node/119. 
  46. "China's fuel subsidy costs the world". Reuters. 2008-06-04. http://www.reuters.com/article/idUSBNG12910820080604. 
  47. "Big bet on better battery-run cars". China Daily. 2011-01-03. http://www.chinadaily.com.cn/usa/2011-01/03/content_11787675.htm. 
  48. "Chery-Quantum to Start Building Cars in Changshu, Jiangsu in 2012". ChinaAutoWeb. 2010-09-06. http://chinaautoweb.com/2010/09/chery-quantum-to-start-building-cars-in-changshu-jiangsu-in-2012/. 
  49. "Better Place in China deal". Financial Times. 2010-04-26. http://www.ft.com/cms/s/0/7452c1e8-50cb-11df-bc86-00144feab49a.html. 
  50. "Chery Auto and Magna Developing Cars For Europe". Motoren. 2011-09-27. http://motoren.wordpress.com/2011/09/25/chery-auto-and-magna-developing-cars-for-europe/. 
  51. "Chery S18 Is Off Line, Achieving Zero Emission and Zero Pollution". Chery Automobile. 2009-03-18. http://cheryinternational.com.s11770.gridserver.com/en/node/121. 
  52. "Chery wins three awards including "Influential EV Manufacturer of the Year"". Chery Automobile. 2011-12-31. http://www.cheryinternational.com/viewNews.php?id=75. 
  53. "Electric vehicles". Chery Automobile. http://www.cheryinternational.com/. Retrieved 2012-02-08. 
  54. "Chery Rely Fleet Starts Dakar Rally". Chery Automobile. 2009-12-31. http://cheryinternational.com.s11770.gridserver.com/en/node/833. 
  55. "Rely X5 test for Dakar, Lu Ningjun satisfied with preparations". Chery Automobile. 2010-11-14. http://cheryinternational.com.s11770.gridserver.com/en/node/1002.  (2011 Dakar Rally entry list)
  56. "Crash Course in Quality for Chinese Car". The Wall Street Journal. 2007-08-07. http://online.wsj.com/article/SB118651314364590719.html. 
  57. "2009 First Family Car, Chery A3 Hatchback Launched". Chery Automobile. 2009-01-12. http://cheryinternational.com.s11770.gridserver.com/en/node/112. 
  58. "16 New Cars to be Launched in 2009, Chery Implements Multi-brand Strategy". Chery Automobile. 2009-02-22. http://cheryinternational.com.s11770.gridserver.com/en/node/118. 
  59. Goodman, Peter S. (2005-06-04). "China a Weak Ally on Piracy". The Washington Post. http://www.washingtonpost.com/wp-dyn/content/article/2005/06/03/AR2005060301835.html. 
  60. "Lawsuits". China Motor Vehicle Documentation Centre. http://www.chinesecars.net/index.php?page=59. Retrieved 2011-03-12. 
  61. "GM Daewoo claimed their investigation results showed the Chery QQ shared a remarkably identical body structure, exterior design, interior design and key components". BBC News. 2005-05-09. http://news.bbc.co.uk/2/hi/business/4528565.stm. 
  62. "China to Foreign Automakers: Drop Dead". The Truth About Cars. 2007-08-16. http://www.thetruthaboutcars.com/editorials/china-to-foreign-automakers-drop-dead/. 
  63. "Designed in Italy, Engineered in China". Car Design News. 2010-08-09. http://www.cardesignnews.com/site/home/new_cars/display/store4/item200862/. 
  64. "???? ? ???????" (in Russian). Autoreview. http://www.autoreview.ru/archive/2006/05/CheryTiggo/. Retrieved 2011-06-10. 
  65. "Chery Eastar unveiled in Shanghai". China Car Times. 2011-04-25. http://www.chinacartimes.com/2011/04/25/chery-eastar-unveiled-in-shanghai/. 

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