Chery to build assembly line in Tainland; plan to invade North America market postponed

Shanghai. November 20 (Gasgoo.com) - The Charoen Pokphand Group,one of Thailand's most successful investors in China, is negotiating with Chery Automobile Co Ltd to build an assembly plant in Thailand, China Business News reported today.

Thanakorn Seriburi, vice-chairman of the CP Group, said the two sides will invest 220 million yuan (1 billion Thai baht) to build a new plant by 2008, with an annual output capacity of 3,000 to 4,000 units in the first phase. The cars or pickups to be built at the plant will be sold under Chery brand.

Thanakorn Seriburi also said the group may also import Chery compact cars from China at an affordable price of around 320,000 baht per unit if the joint venture project was again postponed.

Charoen Pokphand Group first unveiled plans to import Chery cars earlier this June but the plan was delayed due to political uncertainties in the country.

Separately, Chery’s plan to invade North American market has been postponed since the company is not ready for this plan, a Chery executive says.

"The preparatory work has started but we don't have a timetable for entering the U.S. market," said Lin Zhang, general manager of Chery's international operations.

Frank Klegon, Chrysler's executive vice president for vehicle development, said in a media interview that Chey vehicles have not yet met U.S. crash-test standards.