Chery Automobile

Company Name: 奇瑞汽车股份有限公司

Company Name: Chery Automobile Co. Ltd.

overnment-owned corporation

March 18, 1997 in Wuhu, Anhui Province, Peoples Republic of China

Wuhu, Anhui Province, China

Local Government of Wuhu

Key Personnel: Yin Tongyue (尹同躍), Chairman

Website: www.cheryinternational.com

Chery Automobile is an automobile manufacturer in China.

It is owned by the local government of Wuhu, Anhui province but is scheduled to be privatized. In 2007 Chery sold about 381,000 vehicles. 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 using a chassis licensed from Volkswagen's SEAT Toledo. Chery was the first Chinese automobile maker to export its products, and as of 2009 it remains the top exporter among Chinese automakers.

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 9000#Industry-specific interpretations|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 (Engineering Firm)|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. Robert Bosch GmbH|Bosch is helping Chery to design modern transmissions. Lotus Cars (known for their racing car chassis expertise) is aiding Chery in car design and quality. Ricardo Consulting Engineers is also developing a Hybrid electric vehicle 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.

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

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 three Matiz clone and derivatives (QQ3, QQ6 and A1) and 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 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 Complete knock down 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 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.

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
 * 2007: 381,000
 * 2008: 356,000

Brands
Chery Automobile holds 5 sub-brands, Rely, Chery, Kerry, Riich and the new brand XuanYuan (not released).


 * Chery: The product-line includes Chery A3, Chery A1, Chery A5, Chery V5, Tiggo, Cowin, QQ3, QQ6, QQme.


 * Rely: Rely 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.


 * Chery 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.


 * XuanYuan: The new brand aims at "Super luxury" segment. The exact date for launching the new brand has not yet been released.

Out of production

 * 1999–2006 Fulwin/Windcloud (风云) (codename A11) — 1.6L sedan

In production

 * 2003– QQ/QQ3 (codename S11) — 0.8L & 1.1L city car
 * 2003– Cowin/Flagcloud (旗云) (codename A15) — 1.5L 1.6L sedan
 * 2003– Eastar (东方之子) (codename B11) — mid-size sedan
 * 2005– Tiggo (瑞虎) (codename T11) — 1.6L & 2.0L & 2.4L compact SUV
 * 2006– A5 (codename A21) — 1.5L, 1.6L & 2.0L sedan
 * 2006– V5/Eastar5 (codename B14) — 1.8L, 2.0L & 2.4L minivan
 * 2006- QQ6 (codename S21) — 1.1L & 1.3L city car
 * 2006- Karry a small panel van.
 * 2007- A1 (codename S12) - 1.2L 1.3L city car
 * 2008- A3 (codename M11) - 1.6L 1.8L sedan/hatchback
 * 2009- QQme (codename S16) - city car

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
 * 2006- codename S22
 * 2006- codename B13
 * 2007- codename T15
 * 2007- codename B12
 * 2008- codename P12
 * 2008- codename F11
 * 2008- codename B22
 * 2008- Chery Faira
 * 2009+-codename S18 (plug-in hybrid)