Chery could be sold to a private Chinese group
- Chinese automaker Chery was one of the most promising OEMs in the country a decade ago, thanks to an ambitious international strategy. Established in 1997, Chery began car production in 1999 and exported its first models in 2001. The manufacturer signed agreements with Iran in 2003, Egypt and Malaysia in 2004, Russia in 2005, Indonesia in 2006. In 2007, Chery signed an agreement with Fiat to produce Fiat and Alfa-Romeo in China. The same year, Chery becomes the second largest independent Chinese automotive manufacturer behind Changan.
- But since that date, Chery has experienced a number of setbacks. Exports are stalling, the agreement with Fiat has failed to yield any benefits, the proliferation of brands within the group is not pertinent, the creation of the Qoros brand in 2013 has resulted in very limited sales, sales of the city QQ - Chery's flagship model – are eroding year by year, the product range policy seems inappropriate, as does the expansion of its production capacity. In short, Chery’s market share is shrinking and its debt increasing, with the result that the manufacturer finds himself in 2017 in 6th place among the independent Chinese manufacturers, and 13th place among all Chinese manufacturers. Chery will produce as many cars in 2017 as in 2010, while at the same time Geely’s production tripled and that of Great Wall has been multiplied by two and a half. To get out of this delicate situation, Chery could be sold to a private Chinese group. Apparently the Baoneng group would be interested.
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