Chery, Quantum LLC JV to build a high-end model

Shanghai. August 20 (Gasgoo.com) Chery Automobile Co's joint venture with the U.S.-based Quantum LLC will probably build a high-end brand when it starts operation, the 21st Century Business Herald reported today.

Citing sources familiar with the deal, the newspaper said the JV automaker may buy a mature European brand, build a new brand or use existing brand of a new partner. Currently the automaker is carefully examining the plan.

Construction of the venture is reported to be completed by the end of this year, with an annual production capacity of 150,000 units. Other models scheduled for the plant include Chery A6, Tiggo6 and a three-door SUV.

Chery and Quantum LL started to build the joint venture facility last May with registered capital of $500 million. Chery invested $270 million in terms of land and technology in return for a 55 percent stake in the venture while Quantum LL spent $225 million for the remaining stakes.