Chery to sell old models and platforms to Tata, report says
Chery Automobile Co. is in talks with Tata Motors about selling its old models and vehicle platforms to its Indian joint venture partner, according to Chinese media.
State-owned Chery intends to sell the QQ, A1 and M1 micro sedans, and also the A3 compact car, reported Nanfang Daily, a Chinese newspaper based in the south China city of Guangzhou.
Chery expects to raise capital from the asset sale to Tata to ease its heavy debt burden, according to Nanfang Daily. The newspaper cited Chery insiders.
Tata could produce the cars in India for the local market and neighboring countries after purchasing these assets from Chery, according to the newspaper.
Chery has formed a joint venture with Tata to produce Land Rover and Jaguar cars in Changshu of east China's Jiangsu province. The new venture is expected to start production in 2015.
Chery, struggling to generate a profit after years of reckless expansion, spun off its commercial microvan business to its corporate parent, Chery Holdings.
The company also eliminated brands last year and cut the number of models to nine, down from 20. Chery now makes cars under the single Chery brand.
Chery, which is headquartered in the east China city of Wuhan, sold fewer than 430,000 vehicles in 2013, down 17 percent. The automaker has a joint venture with Israeli investment company Israel Corp., which builds the Qoros-brand cars in Changchu.
Chery expects to raise capital from the asset sale to Tata to ease its heavy debt burden, according to Nanfang Daily. The newspaper cited Chery insiders.
Tata could produce the cars in India for the local market and neighboring countries after purchasing these assets from Chery, according to the newspaper.
Chery has formed a joint venture with Tata to produce Land Rover and Jaguar cars in Changshu of east China's Jiangsu province. The new venture is expected to start production in 2015.
Chery, struggling to generate a profit after years of reckless expansion, spun off its commercial microvan business to its corporate parent, Chery Holdings.
The company also eliminated brands last year and cut the number of models to nine, down from 20. Chery now makes cars under the single Chery brand.
Chery, which is headquartered in the east China city of Wuhan, sold fewer than 430,000 vehicles in 2013, down 17 percent. The automaker has a joint venture with Israeli investment company Israel Corp., which builds the Qoros-brand cars in Changchu.
