Jianghuai Auto has no plan to merge with Chery

Shanghai, March 10 (Gasgoo.com) Jianghuai Auto's president said yesterday that the company currently has no plan to merge with Chery Auto, Beijing Times reported.

Mr. Zuo Yan'an told reporters in Beijing yesterday that Jianghuai Auto wouldn't merge easily with other automakers but may consider deepening cooperation with rivals on the part of R&D activities.

The central government wants to cut the number of major Chinese auto groups to 10 or fewer from 14, and wants two or three mega-producers with annual output of more than 2 million vehicles each.

The plan, part of a wider stimulus package for the auto industry, is aimed at boosting sales and production this year to 10 million units and keeping growth at about 10 percent in the next few years.

Executives and analysts predicted Chery Auto and Jianghuai Auto group to join hands under this policy.