Chery seeks big cash injection to ease debt burden, report says
Chery Automobile Co. is looking for investors to inject no less than 20 billion yuan ($3.1 billion) in the troubled state-owned carmaker, according to a Chinese media report.
The move was approved by representatives of Chery’s work force at a company meeting Tuesday, Beijing business newspaper Securities Daily reported.
The new investors are likely to be private businesses that will gain majority control of Chery, the paper said, citing company insiders.
Chery, based in Wuhu of east China’s Anhui province, is majority owned by the Wuhu city government.
For the past several years, the company has operated well under its annual production capacity of more than 1 million vehicles and racked up huge financial losses.
In 2017, Chery’s deliveries dropped 4.2 percent to below 563,000. Its core business, light-vehicle manufacturing, resulted in a loss of 37.6 million yuan in 2017.
Chery hasn’t disclosed sales for the first four months of this year.
Chery sold half of the 50 interest it held in a Shanghai small carmaker, Qoros Automotive, to private domestic business conglomerate Baoneng Investment Group in December.
Chery also runs a 50-50 joint venture with Jaguar Land Rover in Changshu of east China’s Jiangsu province.
The new investors are likely to be private businesses that will gain majority control of Chery, the paper said, citing company insiders.
Chery, based in Wuhu of east China’s Anhui province, is majority owned by the Wuhu city government.
For the past several years, the company has operated well under its annual production capacity of more than 1 million vehicles and racked up huge financial losses.
In 2017, Chery’s deliveries dropped 4.2 percent to below 563,000. Its core business, light-vehicle manufacturing, resulted in a loss of 37.6 million yuan in 2017.
Chery hasn’t disclosed sales for the first four months of this year.
Chery sold half of the 50 interest it held in a Shanghai small carmaker, Qoros Automotive, to private domestic business conglomerate Baoneng Investment Group in December.
Chery also runs a 50-50 joint venture with Jaguar Land Rover in Changshu of east China’s Jiangsu province.
