Chery preparing to open new subsidiary company

Gasgoo.com (Shanghai June 15) - Chery is getting ready to open a subsidiary company researching ways for the manufacturer to enter the 100,000 yuan (around $15,000) market, the Beijing Youth Daily reported today. "Our company is currently doing preparatory work," Xiang Ming, head of Chery's market research." However, Chery's top executives are currently not disclosing any detailed information.

The National Development Reform Commission (NDRC) has recently approved Chery's 2009 request to open a new subsidiary division targeted toward passenger car sales. The production site for the new company, which is currently in the manufacturing statge, has been moved from Wuhu, Anhui to Jiangsu. According to reports, Chery has invested $950 million in the new company, which has already applied for trademark protection.

Rumors have been circulating that there are there is currently a lack of talent for the new company, with the current head of design having already retired.