Chery to develop high-end vehicles similar to Toyota's Lexus

Shanghai. September 11 (Gasgoo.com) - Chinese automaker Chery Automobile, which has formed a joint venture with Quantum, an American branch of Israel Corp. earlier this year, plans to build a mid-range sedan starting October 2009, and then to establish a high-end arm, said a Chery official last weekend.

"We plans to produce a 150,000 Yuan ($20,000) model at the first stage, and the high-end sedans will be put into production in the next three to five years," said Li Feng, Chery's vice president and general manager of sales and service division.

Chinese state media Xinhua news agency reported that Chery will develop cars for Chery Quantum under a new brand name, as Toyota created its luxury brand Lexus and Nissan with Acura.

In May, Chery signed an agreement with Quantum to form a $773.5 mln joint venture--Chery Quantum Automobile Co, in which Chery and Quantum hold 55% and 45% stakes respectively. The joint venture will be able to produce 150,000 units annually for European and American markets. Both parties also agreed to develop hybrid and alternative-fuel automobile technology.

Under the agreement, Chery Qunantum will concentrate on the production of A6, B22, T21 and M21 models. B22 and T21 are SUVs while M21 will be revamped sedans based on the existing models.

"The newly-unveiled luxury sedan F11 could be possibly produced by Chery Quantum," Li Feng said. F11 is set to roll out in as early as 2009, the company announced. 

Quantum LLC, based in the United States, is controlled by the holding company Israel Corp. Chery Automobile, one of Chinese leading home-grown automakers has cooperation with Chrysler, Fiat, Khodro Co. the biggest automaker in Iran.