South China Sea disputes to: the development of China's land in the Spratlys grows, says Pentagon
UPDATE 1-Chery Auto said China can combine quality, low prices.
SHANGHAI, September 21 When Chery Automobile, one large Chinese automaker without foreign joint venture partner, signed an agreement in July to provide small cars to Chrysler, it was the first formal recognition that a Chinese car in the adult house was good enough for the US market.
But Chery is no brand high price in its home country.
China's fourth largest automaker and one of its fastest growing, is one of its cheapest model QQ-hot sale, which at a low list price 40,000 yuan 5330 costs less a vehicle license in Shanghai Its most expensive model lists for about 200,000 yuan.
In a tour this week of the sprawling factory Chery in the Chinese city of Wuhu, five hours drive from Shanghai, executives revealed their formula for combining quality and low cost not skimping on parts, equipment and top talent.
In the assembly and paint factory for compact A1, which provides for Chrysler to roll in the U S showrooms in 2009 under its own badge robots do most of the work.
The A1 was built with the help of Italian design house Bertone and is powered by a 3 liter engine 1 developed with the Austrian engineering firm AVL.
We spent handsomely on hardware and ordered parts from the best suppliers such as Bosch and Delphi, Valeo, said Zhou Biren, vice president of English Chery.
But it was money well spent because it will allow us to build quality cars at affordable prices.
He declined to reveal how Chery spent on equipment, but another company executive said a single test center imported from Germany costs 300.000 419.400 euros, 10 times more than a version made at national level, Chery and operates 13 such facilities.
Chery has the support of the local government in Anhui, a largely agricultural province, which is eager to strengthen its automotive industry.
sustained demand for its models also helps to finance investment, executives said.
From January to July, it sold 197.923 vehicles, ranking number four in China, the second largest automobile market in the world after the US The first three are joint ventures of Volkswagen AG and General Motors Corp. GM N.
Most Chinese automakers have until recently relied on versions locally made foreign brands to boost sales.
Chery, however, since day pursued an independent path to create a national brand, using imported equipment, outsourced designs, and experienced engineers and designers committed to Chrysler, Volkswagen, Ford and FN 'other.
Why foreign brands Why China could not have its own national brand that is equally good says Jin Yibo, vice president of Chery sales arm has joined the company in 1998.
Last month, Chery has signed a memorandum of understanding with Fiat SpA to make cars bearing both Chery and Fiat brands If it goes ahead, it will be the first Sino-foreign joint venture to make cars with Chinese badge.
Chery now exports cars to more than 50 countries, including Russia, the Middle East and South America, is part of an ambitious little Chinese players club such as SAIC Motor Corp and Geely Automobile Holdings, hoping eventually emulate the success of Toyota Motor 7203 T.
It aims to generate 40 percent of its revenue, estimated at 1 million cars overseas by 2010, up sharply from 25 percent expected this year.
Zhou is fluent in Japanese, said he hoped to ship cars from Chery in mature markets, one day, but said that the Chrysler deal was a good start.
Although the cars will be sold under the Chrysler brand, Chrysler via the network, everyone knows that these cars are designed and produced by Chery This can help to promote our image 1 7505 Yuan.
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Update 1Chery Auto said China can combine Reuters low value, update, auto, says China.