Chery Quantum Joint Venture Plans New Cars With Magna’s Input
Executive Summary
Magna International, a contract assembler for several auto makers, is working with Chery Quantum on development of the joint venture’s new vehicles.
VIENNA – Chery Quantum Automobile, the joint venture between Chinese auto maker Chery and Israeli conglomerate Israel Corp, plans to produce three models starting in 2012, German business daily Financial Times Deutschland reports.
The JV’s portfolio may include two cars and one SUV.
Chery Quantum will not announce branding of the new vehicles before the end of this year, but the newspaper reports the brand likely will be named Qoros.
Magna International is Chery Quantum’s development partner. A spokesperson for Magna Steyr in Austria confirms the contract-car-assembler and auto-parts maker is doing development work for the JV, but declines to provide more detailed information.
Gert Volker Hildebrand, who headed BMW’s Mini design studio until the end of 2010 and was responsible for the overall Mini design since 2001, now holds a similar position at Chery Quantum.
Financial Times Deutschland describes Hilebrand’s typical month: “One week in Shanghai at Chery Quantum; two weeks in Graz (Austria) at Magna, where the development is at home; one week in Munich.’’
The vehicles are to be exported to Europe.
The Chery Quantum JV was established some years ago. Original plans called for production to begin in 2009 at a plant in Chery’s home city of Wuhu in Anhui province. But China’s National Development and Reform Commission in May approved the company’s request to build the factory in Changshu, Jiangsu province, near Shanghai.
Media reports give varying figures, but the plant could have initial annual capacity of about 150,000 units.
Investment in the first stage of the facility’s construction will be about $1.08 billion, Israel Corp says in its financial report.
The amount “is to be financed from the shareholders’ equity of Chery Quantum and from new investments of each of the parties’ holdings interests in the JV in accordance with the business plan,” the report says.
