Quantum abandons plans to build rebadged Chery vehicles
Quantum LLC has decided not to build new cars by modifying existing models of Chery Automobile Co., as it had originally planned at its joint venture with Chery in Wuhu of east China's Anhui province, sources say.
Instead, the joint venture, Chery Quantum Auto Co., will build completely new premium models under its own brand, according to a supplier source.
Under the initial plan, the joint venture was to develop new cars by modifying Chery's A6 three-box sedan and Tiggo SUV.
Chery Quantum is now recruiting managers and engineers from across the world. It won't be able to launch its first model until 2012, according to a source with a company affiliated with Chery.
Set up in February 2008, Chery Quantum was initially a 55-45 joint venture between Chery and Quantum. But the shareholding has been adjusted to 50-50, with management under the control of Quantum, sources say.
Quantum, a subsidiary of Israeli conglomerate Israel Corp., is now running the Wuhu-based joint venture from its Shanghai office.
According to a plan Israel Corp. discloses on its Web site for Chery Quantum, the joint venture will build and market a"new well-differentiated brand of premium, western-standard vehicles."
By combining Chery's manufacturing capabilities with western design, engineering and safety standards, the automobiles of the joint venture will be first sold in the fast growing Chinese domestic market and eventually be exported to western countries, the plan also says.
