Date posted: 2007-08-13 16:06:00.0
TEHRAN, Iran — Chery is on its way to international expansion. After clinching recent deals with Chrysler and Fiat, the Chinese company now has made two separate agreements in Iran, which will eventually result in local assembly of more than 200,000 Chery cars.
Chery has wanted to set up a plant in the country since 2003. Last year, it cut a deal with private carmaker Kerman Khodro to locally assemble the QQ. Currently, there's a four-month waiting list for the car.
In 2006, negotiations were launched between Chery and the biggest Iranian carmaker, Iran Khodro. The first deal was closed last month, when it was announced that local production of the Chery A5 will be launched later this year. Eventually, the A5 will be made in a new plant, set up by Iran Khodro Khorassan, a subsidiary of Iran Khodro that currently produces Peugeot-derived models and the Suzuki Grand Vitara off-roader.
Late last week, Chery announced a second, even bigger deal, worth an estimated $370 million. A new company will be set up, which will be jointly owned by Iran Khodro (49 percent), Chery (30 percent) and a Canadian investment firm, Solitac (21 percent). The plant will be located in Babol in Northern Iran and will assemble the Chery QQ6 sedan. In the midterm, 200,000 units are planned to be produced annually.
Chery also has local assembly deals in Malaysia, Egypt and Uruguay, as well as agreements to build cars in China for Chrysler and Fiat.
What this means to you: Chery is conquering the world step by step.