Great Wall Motor likely to join hands with Chrysler

Shanghai, March 26 (Gasgoo.com) Great Wall Motor is considering global expansion by joining hands with international partners, following the OEM (original equipment manufacturer) deal signed between Chery and Chrysler, state media reported earlier this week.

Great Wall Motor, China's largest maker of pick-up trucks, is reportedly in talks with several multinational brands to become their original equipment manufacturer. Wang Fengying, general manager of Great Wall Motor, confirmed that the company was approached by a US carmaker for OEM cooperation, but she did not mention the name of the company. Industry insiders close to the issue note that the US carmaker is Chrysler. So far, no agreement has been inked in yet.

Chrysler's senior executives visited the passenger vehicle production bases of Great Wall Motor on January 8. And seeking OEM opportunities is seen as part of the long-term global expansion strategy of Great Wall Motor and as the first step taken by the Chinese carmaker to foray into the high-end auto market overseas. According to the strategic plan of Great Wall Motor, its sales volume is expected to reach 500,000 units in 2009, half of which will be sold globally.

Great Wall Motor has a plan to put its self-branded sedans on the global markets in April 2008. According to its international market strategy released on March 2, Great Wall Motor was set to export 80,000 units in 2008 and further speed up its paces to the European market by launching its whole portfolio there.

As a short cut to spreading the brand recognition globally, OEM also helps boost international consumers' confidence in products made in China. Chrysler has been looking for a partner to strengthen its capacity for small-displacement vehicle manufacturing. It had contacted auto makers in Russia and India.

Great Wall Motor has delivered its auto vehicles to 121 countries, and this year it will add to some 500 after-sales service outlets across the world. The company is listed on the Hong Kong stock market.

China's carmaker Chery signed an OEM deal last July with Chrysler. The two auto giants planned to launch a low-cost production venture that could export the first Chinese-made Chrysler cars to the United States and Europe.