China Chery Automobile

Chery Automobile is an automobile manufacturer in People's Republic of China.

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It is owned by the local government of Wuhu, and produced about 188,000 vehicles in 2005. Chery was founded in 1997 to prop up the economy in remote Wuhu. The company was not able to obtain a license to produce vehicles for sale in all of China, but was saved by an order for taxis by the local government. In 2001, Shanghai Automotive Industry Company (SAIC) invested in the company, allowing it to use SAIC's national retail sales license. In 2003, Chery founded a research and development organization, quickly designing its own 3- and 4-cylinder engines. However, Chery was also sued by GM Daewoo for copying that company's Chevrolet Spark (a.k.a. Daewoo Matiz). Chery claims that they licensed the vehicle design prior to General Motors' purchase of Daewoo. Chery was able to scout a number of key engineers from South Korea's Daewoo motor during its bankruptcy proceeding in 2001~2002, who took a complete set of plans with them and went on to create Daewoo vehicles at Chery. The copied vehicles are Daewoo Matiz(Chery QQ) mini car and Daewoo Magnus(Chery Oriental Son) mid-size sedan. They are exact replicas of Daewoos, being able to swap door panels and key components between them. Both Matiz and Magnus are currently sold as Chevrolets outside of South Korea and Vietnam. Its expected that the Chery QQ wil hit the markets in europe in 2006, the introduction price is expected at 5000,= Euro's, making it the cheapest car in Europe together with the Dacia Logan. In 2005, Chery started export of right hand drive vehicles to Malaysia. The rebadged Chery A15, is to be powered by BMWs Tritec engine.


Despite its humble beginning, Chery has achieved many unlikely breakthroughs and become the fastest growing independent automaker in China. Chery is committed to developing world-class automobiles via cooperation with top engineering firms such as Lotus Engineering of the U.K, and Mitsubishi Automotive Engineering of Japan, and leading auto designing firms such as Bertone and Pininfarina of Italy. In its relentless pursuit of quality, Chery adopts DURR Paint Systems in its paint shop in 2004. In 2005, as a groundbreaking event for Chinese automotive industry, Chery starts producing China¡¯s first high-performance Euro IV engines in cooperation with AVL List of Austria. In addition, in J.D.Power 2004 China Initial Quality Study, Chery QQ finishes NO.1 in compact car segment. With an ambition to become a global player, Chery has so far launched its products in 29 countries. For the time being, Chery is developing a new line-up of products aiming at auto markets in the U.S and EU. In 2005, a strategic partnership is formed between Chery and Vesionary Vehicles of the USA for launching Chery products in North America in 2007.

Chery Automobile Timeline
1997- Chery Automobile Co., Ltd is founded in Wuhu City, Anhui Province, P.R.China
1999- First Chery automobile rolls off the assembly line
2000- Chery passes 40 national tests including Auto Crash Test
2001- Chery starts exporting automobiles to Syria
2002- Chery becomes the first Chinese automaker to pass Auto Side Impact Test in China National Auto Test Center Chery becomes the first Chinese automaker to be awarded with ISO/TS 16949 by TUV, Germany Annual sales volume reaches 50,000 units



2003- Chery signs an agreement with SKT to launch a CKD project in Iran Chery launches Windcloud, QQ, Oriental Son, and Flagcloud Chery sets up Automotive Engineering Research and Development Institute
2004- Chery adopts DURR Paint Systems in its NO.2 paint shop Chery production reaches 200,000 Units
2005- Chery forms a strategic partnership with Visionary Vehicles of the U.S.A Chery QQ ranks highest in compact car segment in J.D.Power 2004 China Initial Quality Study (IQS), As a groundbreaking event in Chinese automotive industry, Chery No.2 Engine Plant starts manufacturing China¡¯s first high-performance Euro IV engines in cooperation with AVL List of Austria. Products include 18 series of diesel and gasoline engines with displacement between 0.8 Lt. and 4.0 Lt.


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