Chery acquires Yangzi officially

According to the report from National Development and Reform Commission, the original FAW Yangzi Automobile Co., Ltd was named as Chery (Anhui) Automobile Co., Ltd instead, and Chery Deputy Manager Kanlei took up as Head of the new company.

The FAW Yangzi Automobile Co.,Ltd, a joint venture of First Automobile Group, Yangzi Group, and Wuhu Automotive Industry Company, was built in 1993 at Wuhu Anhui, with an investment  volume of RMB 470 million. The company has chassis and bus plants, which owns annual production of 30,000 and 2,000 units, respectively.

Through the incorporation Chery obtained the chassis production base and thus is allowed to produce commercial vehicles independently. Chery plans to invest RMB470 million to build new welding and assembling production line, targeting an annual output of 80,000 vehicles. Chery hopes to produce 300,000 vehicles annually by 2010.

Chery engineering research center has established commercial vehicles R&D division. Insiders say Chery will produce mini-bus chassis, which will be equipped on the L11, L12 commercial vehicles, including pickup and mini-van. Chery may produce more commercial vehicles than sedans, as the variable distribution of population and industry in China laid big demands for low cost transport vehicles.