DR Motor to sell rebadged Chery cars by mid-'09

Shanghai, December 9 (Gasgoo.com) DR Motor, an Italian company engaged in the assembly and distribution of Chinese cars, will start to sell the rebadged version of Chery cars by mid-2009, a Automotive News report said Monday.

DR Motor is a subsidiary of DR Automobiles Groupe and sells about 8,000 vehicles a year in Italy and has annual revenues of about €250 million.

The DR1 car, a Chery Faira NN indeed, will be powered by Chery's self-developed 1.3-liter ACTECO engine, which can run on petrol (83 hp) or LPG (78 hp). Max speed is 156 km/h. Equipment includes dual airbags, ABS, electronic immobilizer, electric mirrors, manual air-con, rear parking sensors, CD-player.

While the Faira NN has to pass related European regulations for sale in Europe, a Chery spokesman in China said DR Motor is in charge of the DR1's homologation, according to the report.

Massimo Di Risio, CEO of DR Automobiles Groupe, is confident that the car will pass all the tests. He said he plans to begin selling it in Europe by mid-2009. He expects to sell 10,000 units a year by 2010.

Asked why the cars are sold under a rebadged brand, Chery spokesman Jin Yibo said tactfully that the EU is a sensitive market and we shall only consider entering the region when all conditions permit. 

The deal is an extension of Chery's relationship with the Italian firm. The companies have been working together since November 2007 and since then, DR Motor has been producing a version of the Chery Tiggo medium SUV from kits shipped from China.

The cars are assembled at a factory in Macchia d'Isernia, Italy. The plant has capacity to produce 12,000 units a year. DR Motor sells the SUV as the DR5 in Italy.

Last month the Munich-based car importer China Automobile Deutschland (CAD) began selling Chery A1, Easter CROSS and Tiggo across Germany under a Dragon brand in Germany, with the name of each of the imported models changed.