Chery, Quantum JV to build high-end models

Chery Automobile Co.s joint venture (JV) with U.S.-based Quantum LLC will probably build a high-end car brand when it starts operations. The JV may buy a mature European brand, build a new brand or use the existing brand of a new partner. Construction of the ventures plant in Shanghai,China is to be completed by the end of 2008, with an annual production capacity of 150,000 units. Other models scheduled for the plant include the Chery A6, Tiggo 6 and a three-door sports utility vehicle. Chery and Quantum started to build the JV facility in May with a registered capital of US$500 million. Chery invested US$270 million in terms of land and technology in return for a 55% stake in the venture, while Quantum spent US$225 million for the remaining stake. (August 20, 2008)