A new name for Chery

Chery Automobile Co., Ltd. formerly known as Anhui Chery Automobile Co. Ltd., the largest Chinese homegrown carmaker, has changed its name, indicating it has become a joint-stock company and marking a significant step towards stock listing in the Renminbi-denominated stock market. The Wuhu-based carmaker has seen annual growth of around 50% since its establishment. As its domestic and international businesses expand, it is in urgent need of large and stable capital sources. So it decided to raise money from the stock market. The company, which is more than 51% controlled by the government, has finished ownership reform, an important step toward listing. Apart from investing in self-developed brands, Chery exerts to cooperate with foreign carmakers. It has set up a joint venture with Quantum LLC of the US; the venture has total investment of 950 million yuan (US$137.63 billion). It will form joint ventures with Chrysler and Fiat in 2008. Besides exporting cars to overseas market, Chery has set up factories in foreign countries to enlarge international market share. (May 23, 2008)