China's Chery Auto, Russian firm team up for European sales
Chery Automobile has signed an agreement with Russia's Avtotor to assemble its cars for sale to Europe, and the two firms may invest 200 mln usd in a factory
BEIJING (AFX) - Chery Automobile has signed an agreement with Russia's Avtotor to assemble its cars for sale to Europe, and the two firms may invest 200 mln usd in a factory, the South Morning Post reported, citing industry sources.
The private Russian partner is based in Kaliningrad, which borders Lithuania and Poland, both members of the European Union.
The agreement calls for Avtotor to assemble Chery models at its existing factories, the Hong Kong newspaper added.
It also said the agreement could call for construction of a new plant with a capacity of 150,000 vehicles.
Chery officials were not immediately unavailable for comment.
Founded in 1997 in Wuhu, in the eastern province of Anhui, Chery is the eighth-largest domestic car manufacturer in China, with output last year of more than 150,000 units, of which 18,000 were exported, mostly to Iran and Malaysia.
Its production target for this year is 300,000 units and its long-term target is to export 40 pct of production.
Last week, the China Auto Industry Association forecast car sales in mainland China this year at 6.4 mln units, an increase of 12 pct over last year.
The private Russian partner is based in Kaliningrad, which borders Lithuania and Poland, both members of the European Union.
The agreement calls for Avtotor to assemble Chery models at its existing factories, the Hong Kong newspaper added.
It also said the agreement could call for construction of a new plant with a capacity of 150,000 vehicles.
Chery officials were not immediately unavailable for comment.
Founded in 1997 in Wuhu, in the eastern province of Anhui, Chery is the eighth-largest domestic car manufacturer in China, with output last year of more than 150,000 units, of which 18,000 were exported, mostly to Iran and Malaysia.
Its production target for this year is 300,000 units and its long-term target is to export 40 pct of production.
Last week, the China Auto Industry Association forecast car sales in mainland China this year at 6.4 mln units, an increase of 12 pct over last year.
