Chery Automobile: Wikis


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Chery Automobile Co. Ltd.
Type Government-owned corporation
Founded March 18, 1997 in Wuhu, Anhui Province, China
Headquarters Wuhu, Anhui Province, China
Key people Yin Tongyue (尹同躍), Chairman
Industry Automotive
Products Automotive goods

Chery Automobile (English pronunciation: ʃɛɹi;[1] (simplified Chinese: 奇瑞汽车pinyin: Qíruì Qìchē) is an automobile manufacturer in China.

It is owned by the local government of Wuhu, Anhui province but is scheduled to be privatized.[citation needed] In 2009 Chery produced 508,500 units of automobile.[2] Of the 500,000 Chery vehicles sold in 2009, 409,300 units were sedans.[3] It is the largest independent Chinese auto manufacturer and one of the fastest growing automakers in the world.




Early years

Chery was founded as a state-owned enterprise in 1997 and began auto production in 1999[4] using a chassis licenced from Volkswagen's SEAT Toledo.[5] Chery was the first Chinese automobile maker to export its products, and as of 2009 it remains the top exporter among Chinese automakers.[4]

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. 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 stock 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 two 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 both the American and European market and the Chinese market. Aesthetic design is being aided by the Bertone and Pininfarina design houses of Italy, well-known for designing models for brands such as 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 developing a hybrid powertrain for Chery for use on China's first hybrid vehicle. Chery recently entered into a partnership with Chrysler to produce compact and midsize vehicles for the United States and European market.

In September 2007, Senegal's first lady Vivian Wade announced a program called "Taxi Sister" to promote women taxi drivers - the first program of its kind in a 95% Muslim nation. The taxis are Chery QQ, being supplied by a local Chery dealership, and the women drivers are gradually paying for and will eventually own the taxis.[6]

Maurice Strong and George Sorros are two key figures in getting Chery in the United States. Strong has claimed for years that it is only a matter of time before Americans buy Chinese built cars.[7]

Production license issues

Chery is known for copying foreign designs, including General Motors' Korean subsidiary GM Daewoo Auto & Technology's Daewoo Matiz city car (sold as the Chery QQ) and Daewoo Magnus mid-size sedan (sold as the Chery Eastar), along with the emblem appearing derived from the Infiniti emblem. Chery attempted to negotiate local Chinese production licenses of those vehicles with bankrupt Daewoo Motors prior to General Motors' purchase of the bankrupt automaker's assets in 2002,[8] but the negotiations were never closed.[9] Nevertheless, Chery proceeded with the production of these former Daewoo vehicles without a license, triggering General Motors to sue Chery for infringement in December 2004, citing "extreme similarities".[10][11]

General Motors has been unable to press its case against Chery in the Chinese courts, despite pressure from the Chinese government. In November 2005, GM opted to drop its case to preserve its other interests in China and maintain good will with the government. However, GM reserves rights to sue Chery again if it attempts to bring the vehicles in question to European and North American markets. The affected vehicles are the Matiz clone and derivatives (QQ3, QQ6 and A1) and the Magnus clone and derivatives (Eastar, V4, B12, and B22). The IP rights issue has become such a concern that DCX is rumored to have contacted GM for possible licensing of GM Daewoo vehicle IP on the behalf of Chery[12] after it signed a 25-year cooperation and exclusive distribution agreement with Chery in early 2007.

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, a CKD facility became operational in Russia at Avtotor. 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 Maadi, Cairo under the Speranza[13] brand name. Chery has signed an agreement with Argentine conglomerate Socma to form Chery Mercosur, a joint-venture which is producing the QQ and Tiggo in Montevideo, Uruguay, since 2007.[14]

Chery production 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: 307,232 [15]
  • 2007: 381,000
  • 2008: 356,000
  • 2009: 508,500

Brands and models


Chery Automobile holds 5 sub-brands, Reely, Chery, Kerry, Riich and the new brand Xuan Yuan (not released).

  • Rely: Reely is the sub brand held by Chery Group, the philosophy of the brand, according to official explanation, is "Engine & Drivers". The product-line includes a series of SUVs, MPVs and minivans.
  • Karry: Originated from the English word "Carry", its product-line include a series of minivans and pickups
  • Riich: Its product-line includes a series of high and middle class cars.
  • Xuan Yuan: The new brand aims at "Super luxury" segment. The exact date for launching the new brand has not yet been released.[16]

Out of production

In production

The Chery QQ, A1, and V5 (as the Eastar5) have been exported and sold in Singapore. In Egypt, the QQ, Cowin, Fulwin, and A5 are sold under the Speranza name.

Upcoming/Prototype models

  • 2005- codename M14[17]
  • 2006- codename S22
  • 2006- codename B13[18]
  • 2007- codename T15
  • 2007- codename B12
  • 2008- codename P12
  • 2008- codename F11
  • 2008- codename B22
  • 2008- Chery Faira[19][20]
  • 2009+-codename S18 (plug-in hybrid)

See also


External links


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