China's Chery Automobile Co (
"Those were tough times," said Jin, shaking his head in disbelief as he recalled Chery's humble beginnings 10 years ago.
It was March 1997, and the firm based in Anhui, one of China's poorest rural provinces, had been established with 1.7 billion yuan (US$225 million) of government money but had never turned out a car.
PHOTO: AFP
"There was nothing here, this was just fields," said Lucas Biagini, chief executive of Italian parts supplier Magneti Marelli that now earns about 30 percent of its China sales from the upstart Chinese group.
The plant's spectacular expansion reflects how Chery has successfully grown from "young boys into mature people," Biagini said.
With little industrialization to speak of, the provincial government quixotically cast its fortunes in with the auto industry, betting that China's 1.3 billion people would soon have enough money to buy their own set of wheels.
"The decision was correct," Chery vice president Zhou Biren (
Chery's home in the Yangtze river port city of Wuhu is today a massive industrial park, housing not only the company's vast high-tech plants, but major US, European and Japanese auto engineering firms.
The proximity of its overseas suppliers such as Visteon, Bosch and Siemens has been critical to the rapid growth of a firm that recognized from the start its ambitions had to be built on the back of foreign technology.
"We have received a lot of help from foreign companies, said Lei Gu, a Ford trained engineer, who is one of 70 key engineers that has worked overseas for global manufacturers.
Inside the plant hums with the best German, US and Italian machinery money can buy as busy workers set about the complex assembly and testing that allow Chery to produce 400,000 independent-branded cars and engines a year.
"We spent a lot of money to bring in the best technology," said Zhao Baoming (
Chery saw its millionth car roll off the assembly line last month, a milestone in its rapid expansion that the firm said took six years to make the first half million cars and only one-and-a-half for the second.
It expects to add another 250,000-300,000 units after a new plant starts operation next month and aims to double exports this year from last year to 100,000 cars, as the firm races towards its target of selling 1 million cars annually by 2010.
"Independence, Strength, Innovation, Pioneering," reads a banner hanging at the plant that serves as a reminder of Chery president Ying Tongyao's (尹同耀) lofty goals, which include building luxury cars under a new brand name by 2009.
Ying, who has piloted the firm through its ups and downs, including a nasty intellectual property rights dispute which was settled out of court after General Motors accused the firm of copying one of its sub-compact models, pulled off a major coup with Chrysler in July.
The firms inked a 25-year deal for Chery to build its inexpensive A-1, a 1.3-liter engine hatchback, for the iconic but troubled US firm under its Dodge brand.
Chery had previously planned to exports its brand-name cars to the US, but the deal with auto retailing entrepreneur Malcolm Bricklin was aborted late last year.
Zhou refused to go into details behind the collapsed agreement, but said that Bricklin's Visionary Vehicles group has not been the "appropriate" firm for Chery.
Nevertheless he acknowledged that Chery was not ready to enter the cutthroat US or European markets under its own brand, where rigorous safety and quality standards continue to pose challenges for China's young car firms.
"We have to prepare our products, our distribution network, when all these things are ready then we will go to these markets," said Zhou, declining to provide an entry date.
Chinese cars have failed Western safety tests in the past and in June it was Chery that found itself at the center of global scrutiny when one of its sedans failed a crash test conducted by a Russian auto magazine.
Chery executives reportedly said that the test had been biased and that the car performed much better in later tests in China, but by then filmed footage posted on YouTube was the latest hit on the Internet video site.
Chery executives here insisted that they are employing cutting edge systems to ensure safety and quality of their cars, and say that the days of shoddy Chinese goods are over.
"The quality of Chinese car is exaggerated by some foreign media. We're confident about our future," Zhou said.
SECURITY: As China is ‘reshaping’ Hong Kong’s population, Taiwan must raise the eligibility threshold for applications from Hong Kongers, Chiu Chui-cheng said When Hong Kong and Macau citizens apply for residency in Taiwan, it would be under a new category that includes a “national security observation period,” Mainland Affairs Council (MAC) Minister Chiu Chui-cheng (邱垂正) said yesterday. President William Lai (賴清德) on March 13 announced 17 strategies to counter China’s aggression toward Taiwan, including incorporating national security considerations into the review process for residency applications from Hong Kong and Macau citizens. The situation in Hong Kong is constantly changing, Chiu said to media yesterday on the sidelines of the Taipei Technology Run hosted by the Taipei Neihu Technology Park Development Association. With
CARROT AND STICK: While unrelenting in its military threats, China attracted nearly 40,000 Taiwanese to over 400 business events last year Nearly 40,000 Taiwanese last year joined industry events in China, such as conferences and trade fairs, supported by the Chinese government, a study showed yesterday, as Beijing ramps up a charm offensive toward Taipei alongside military pressure. China has long taken a carrot-and-stick approach to Taiwan, threatening it with the prospect of military action while reaching out to those it believes are amenable to Beijing’s point of view. Taiwanese security officials are wary of what they see as Beijing’s influence campaigns to sway public opinion after Taipei and Beijing gradually resumed travel links halted by the COVID-19 pandemic, but the scale of
A US Marine Corps regiment equipped with Naval Strike Missiles (NSM) is set to participate in the upcoming Balikatan 25 exercise in the Luzon Strait, marking the system’s first-ever deployment in the Philippines. US and Philippine officials have separately confirmed that the Navy Marine Expeditionary Ship Interdiction System (NMESIS) — the mobile launch platform for the Naval Strike Missile — would take part in the joint exercise. The missiles are being deployed to “a strategic first island chain chokepoint” in the waters between Taiwan proper and the Philippines, US-based Naval News reported. “The Luzon Strait and Bashi Channel represent a critical access
Pope Francis is be laid to rest on Saturday after lying in state for three days in St Peter’s Basilica, where the faithful are expected to flock to pay their respects to history’s first Latin American pontiff. The cardinals met yesterday in the Vatican’s synod hall to chart the next steps before a conclave begins to choose Francis’ successor, as condolences poured in from around the world. According to current norms, the conclave must begin between May 5 and 10. The cardinals set the funeral for Saturday at 10am in St Peter’s Square, to be celebrated by the dean of the College
RSS