Chery and JAC to be pushed together by the Gov't

The two Anhui-based automotive giants, Jianghuai Automobile Co. (JAC), and Chery Automobile Co., have been rumored to be planning a merger for several years, even the Chery topman has mentioned once before that he believe Chery and JAC will come together naturally.

We're not quite sure if being pushed together by the government is considered natural or not, but a JAC and Chery merger maybe on the table in 2009. The Ministry of Industry and Information Technology is already talking with the two parties regarding a merger, which may lead to Anhui becoming the 'automotive powerhouse' of China, and perhaps even taking the coveted 'Detroit of China' status away from Chongqing.

It is not expected for Chery and JAC to merge straight away, as both parties need time to assess their assets and show what they will each bring to the table.

JAC is a major MPV maker, but with MPV sales stumbling they have been forced out into sedan and small car production, where they have had some success with their super mini range. Chery on the other hand, have a great deal of cars, many of which compete against each other and overlap in segments. Chery’s branding is also rather odd, with them having Riich and Rely, JAC on the other hand have only the JAC brand, which is working rather well for them.

Chery's JV [plans] with foreign companies have reportedly stalled, including the Fiat and Chrylser JV.