Chery Pauses Expansion, New Car Produced in Dalian Base Next Year

“Chery has built its layout national wide. We will not consider about production capacity enlarge next. If Chinese market keeps going, and our market share increase with it, we may consider about new plant at that moment.” Lizhong LI, vice general manager of Chery, told media at the ceremony for the first SUV Tiggo 5 rolled off line.

In April this year, Chery has reorganized its structure. The company not only adjusts its marketing and research resource allocation, but also cut its product line. It divides its products by 4 production lines, cuts more than 20 products to 11- 12. “Others which not include in the 4 lines will be eliminated.”

However, because of the upgrade of manufacture system, some lines and platform will leave, and they should be used according to our plan.

Lizhong Li takes an example of A3 plant of Wuhu. A3 will be washed out after 2 years, but the product line could stay. Therefore, Chery will not enlarge its production capacity, but focus on how to use the left resource efficiency.

Chery owns four production bases at this moment. They are Wuhu production base (annual production capacity around 600 thousands) which located in head office; Dalian production base (annual production capacity around 200 thousands); Kaifeng production base (annual production capacity 100 thousand) and Erdos production base (annual production capacity around 100 thousand). Totally production of the four production bases mounting to 1 million per year.

As it known, Tiggo 5 and part of exported A1 are produced in Dalian production base. Karry commercial car is at Kaifeng production base. Special vehicle is made in Erdos production base. Others are made in Wuhu production base.

Lizhong Li told reporters of Tencent Auto that remain plants of Chery now are Wuhu plant and Dalian plant. According to Chery five year plan, the company will invest into the two bases ongoing in the next years.

Chery has three new products launched market this year, which include 2 of them made in Wuhu. Meanwhile, Dalian produces its first SUV product Tiggo 5.