Chery Automobile Co., Ltd.,[1] trading as Chery and sometimes known by the pinyin transcription of its Chinese name, Qirui (奇瑞),[2] is a Chinese automobile manufacturer headquartered in Wuhu, Anhui Province, China. It was founded by the Government of China in 1997 and is a state-owned corporation. Chery’s principal products are passenger cars, minivans, and SUVs; it sells passenger cars under the Chery marque and commercial vehicles under the Karry brand. Chery is the tenth-largest China-based automaker measured by 2012 output (around 590,000 units).
Chery began the production of automobiles in 1999 and their export from China in 2001. It has been China’s largest passenger car exporter since 2003, and in 2011 exported around 25% of its total production.[3] It operates a 50:50 joint venture with Kenon Holdings, Qoros, which was formed in 2007 and sells a range of premium vehicles in emerging markets. In 2012, Jaguar Land Rover formed 50:50 joint venture Chery Jaguar Land Rover for the production of Jaguar and Land Rover cars in China with Chery.
Chery has several vehicle assembly and component manufacturing facilities in mainland China, and its vehicles are assembled in around 15 other countries—primarily in factories not owned by the company that utilize either complete or semi-complete knock-down kits. It has two domestic R&D centers and invests around 7% of its total revenues in product development. Its QQ city car, considered to be the best-known Chery model,[4] spawned a sub-brand in its own right; the QQ6 and the QQme are two other cars produced by the company, and the original QQ may now be designated the QQ3.
In the early 2000s, Chery received criticism from General Motors for alleged infringement of its intellectual property rights.
History
1997 to 2010
The Wall Street Journal has described Chery’s corporate culture as “an odd hybrid of Communist state enterprise and entrepreneurial start-up”,[5] and entrepreneurial risk-taking is evident in its early history. Initial production was technically illegal as the company was only awarded a passenger car production license in 2003,[7] and so while its first product rolled off the line in December 1999, it couldn’t be legally sold until 2001.[5] In that year Chery solved the problem by piggybacking on a SAIC Motor license,[5] which it did until 2003.[7] Perhaps the 20% ownership stake in Chery that SAIC once held[8] was compensation for this early favor, but the ownership was soon sold due to rising tensions between Chery and another SAIC partner, General Motors.[9] GM is not the only foreign partner of SAIC to have been exasperated with Chery; Volkswagen claims Chery was using tooling from an old VW factory to produce a model that resembled a Jetta c. 2003.[10]
In the late 2000s, Chery began to actively seek a partnership with a foreign automaker, a hallmark of major Chinese car makers. Tie-ups with both Chrysler and Fiat were touted but fell through. In 2007, Chrysler planned a cooperation with Chery that would have seen the Chery A1 sold as a Dodge-brand car in the US and abroad.[11] The plan would have quickly increased the Chrysler small car stable, and the two companies participated in a signing ceremony in late 2007.[12] In early 2008, a similar deal was reached between Chrysler and Nissan, however, and the Chrysler-Chery cooperation was abandoned.[13] Around the time of the 2009 Chrysler Chapter 11 reorganization, Chrysler discussed the possibility of an asset sale with Chery.[14]
In 2007, Fiat and Chery signed a memorandum of understanding for the creation of a car-making joint venture. Intended to begin operations in 2009, it was to manufacture Fiat and Alfa Romeo-branded products for the Chinese market and be located in Wuhu, Anhui province.[15] The deal was put on hold in March 2009.[16] As of 2012, Fiat produces in China with local partner GAC Group.[17]
Qoros, a car making joint venture between Chery and Singapore-based Kenon Holdings, was established in 2007.[18]
In October 2009, Chery announced plans for an assembly plant in Turkey to be built in cooperation with the Turkish automaker Mermerler Otomotiv at a cost of $500 million.[19][20] The plant is planned to have an initial capacity of 20,000 units per year, rising to 100,000 by 2017.[20] As of 2012, the plant has yet to commence production.[21] When it comes online, this production base will add to a handful of joint venture factories that Chery has in places like Argentina[22] and Iran.[23] These stand in contrast to a number of factories outside China that assemble Chery vehicles but in which Chery does not have an ownership stake.
In 2009, Chery produced 508,500 units,[24] and at this time it had an annual production capacity of around 650,000 units.[25] More than 400,000 of its 2009 sales were sedans.[26] Production capacity figures may consider engines and vehicles as discrete.
2010 to present
Chery became the 7th most-productive Chinese vehicle manufacturer in 2010 by selling nearly 700,000 units.[27] Slipping sales marked 2011 and 2012; in these years the company produced more than 640,000 and near 590,000 units, respectively, and it moved from a seventh to a tenth-place ranking.[28] This decrease may be due to Chery’s manufacturing mix being significantly different than that of other, major Chinese automakers; the company does make commercial vehicles but SUVs comprise only 14% of its product line.
An agreement with Tata Motors was struck in March 2012 to produce Jaguar Land Rover models in China. In 2013, a Tata executive stated that this deal was “still on track”,[29] and some expect the planned production base to start output in 2014.[30]
In June 2012, plans to build a production base in Malaysia were announced, and as of July 2012 this project is proceeding without a local partner.[31] The planned factory will have a production capacity of 10,000 units per year.[31]
After having introduced the Karry, Rely, and Riich sub-brands in 2009, its sprawling production policy and lineup became a problem for Chery.[32] With over 100 new models in the works, Chery decided in the fall of 2012 to cancel the Rely and Riich brands and to narrow its focus.[32] As of 2012, 30 new models are planned a significant reduction from the prior future lineup.[32]
Operations
Mainland China
Chery’s main production base in the mainland of China is located in Anhui.[11][33][34] As of 2007, the company had two auto-making production bases, two engine-making facilities, and a gearbox production base.[33] Another car-making production base located in Dalian, Liaoning province, became operational in 2012.[34][35]
Chery invests around 7% of its total sales in research and development,[36] and, as of 2011, had over 4,000 patents.[37] It has R&D facilities in Wuhu, Anhui province,[38] and Changshu, Jiangsu province.[39]
Other
There are a number of factories in developing countries that manufacture Chery vehicles from either complete or semi-complete knock-down kits. With the exception of an Argentine cooperation[22] and an Iranian factory,[23] these are not owned by Chery. As of the beginning of 2012, 13 operational factories produced Chery vehicles and an additional three were in development.[40]
These factories have appeared in Egypt,[citation needed] Indonesia,[41] Iran,[23] Malaysia,[41] the Middle East,[22] North Africa,[22] Pakistan,[42] Uruguay,[41] Russia,[41]Taiwan,[43] Thailand,[citation needed] Ukraine,[41] Venezuela and Vietnam.[44]
Brazil
Chery has a production base in Jacarei, Brazil, that began construction in July 2011,[40] in a joint effort with the government of the state of São Paulo.[45] The plant began operating in August 2014, with a first phase production capacity of 50,000 units per year. In phase two, the plant will achieve an annual production capacity of 150,000 units. The models produced are the hybrid-powered Celer and the QQ.[46]
Egypt
Assembly of Chery cars from complete knock-down kits began in Egypt in 2004 according to the company itself,[47] but news reports indicate that it only expressed initial interest in doing so that year.[48] As of 2011, some Chery models may be sold here under the brand name Speranza.[49][50] One Egyptian factory making Chery models from semi-complete knock-down kits had a 2009 production capacity of 30,000 vehicles/year.[51]
In 2011, Chery stated the part localization ratio for Egypt was 45%.[37]
Indonesia
In this country, Chery models have been assembled from knock-down kits since 2006.[52]
Iran
Manufacture from kits in Iran dates from as early as 2004.[48] In late 2007, Chery stated that it held a minority ownership in a joint venture with Iranian Khodro and Canadian Solitac as its partners.[23] 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[23] and carry a brand name other than Chery, as well.[citation needed]
But Tiggo5 and Arrizo5 are being sold as Chery brand in Iran.[53]
Malaysia
A small facility may have become operational c. 2004,[48] and by 2008, a factory assembling Chery models from knock-down kits opened in Johor Bahru, Johor.[52]As of 2012, another factory is expected to be built and operational in Malaysia by 2015.[54]
Myanmar
As of May 2011, a 3,000 to 5,000 units per year production facility is planned in the country.[40] As of 2012, the Chery QQ is apparently popular in Yangon.[55]
Pakistan
In 2004, Chery expressed interest in exporting knock-down kits to this country,[48] and at present some assembly may occur.
Taiwan[edit]
The Chery A3 is assembled since August 2009 in Taichung, Taiwan, by Shengrong Auto, a subsidiary of Prince Motors (Chinese: 太子汽車; pinyin: Tàizǐ Qìchē), a Taiwanese car company.[43][56]
Thailand
In 2008, Chery agreed to export knock-down kits to this country,[57] and while an assembly factory was supposed to have become operational in 2010,[52] as of late 2011 Xinhua reported that Chery was conducting a “feasibility study” in regards to “moving production to Thailand”.[58]
Turkey
A production site was planned to be raised in the province of Sakarya, in a collaboration with the local Chery dealer, Mermerler Otomotiv.[20]
Ukraine
Chery has been a partner of ZAZ since 2006[59] and manufactures from kits at sites in Zaporizhia and Chornomorsk. Since February 2011, the Chery A13 is manufactured in Ukraine where it is rebadged as a ZAZ Forza.[60]
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 according to the company.[37] 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.[61]
Former factories
Russia
In Russia, Avtotor produced Chery models from knocked down kits, from 2006 to 2008.[62] TagAZ also produced Chery vehicles, from 2008 to 2014, but these usually carried non-Chery badges such as “Vortex”.[63]
Uruguay
Between 2007 and 2015, Argentinian company SOCMA Group[22] manufactured Chery vehicles in the Oferol factory in Barra de Carrasco, Canelones, Uruguay.[64]The Tiggo was officially launched in Uruguay in October 2007.[65][66] The plant was permanently closed as of May 2015
CHEVY CARS
CHERY – QOROS 3
CHERY – QOROS 3 hatchback
CHERY – QOROS 3 CITY SUV
gamas43 