Chery to invest 20billion in project of SUV

　　Chery hasn’t stopped its pace of speeding up distribution of production base after Dalian, Wuhu and Kaifeng. On May 17 Chery Automobile announced project in Ordos with an investment of 20 billion yuan was formally started.

　　According to relevant information, Chery Automobile’s Ordos project will start from auto parts& components, then gradually begin doing entire vehicle modifications, and finally form a production base with 300,000 annual production capacity of SUV, pickup, commercial vehicle and recreational vehicle.

　　It is reported that Chery and its partner would invest in the project during different phases, and the fund can eventually reach 20 billion yuan completed during 12th Five-Year Plan period.

　　Chery spokesman Jin Yibo said Chery has stepped up the layout for the new round of development since 2009. Production base currently under construction in Dalian mainly focuses on passenger cars. Additionally, Dalian base is supposed to cover the northeast region and commit to the task of overseas sales. Kaifeng project mainly focuses on micro-cars and light trucks. Kaifeng project is based on the Central Plains and its radiation is predicted to reach whole China. The western region of China where Chery’s Ordos project located is the most important market for models such as SUV, pickup and it accounts for more than 20% of market share. As a result, the choice to establish the Ordos base of SUV, pickup and commercial vehicle is Chery’s need of market development.

　　Industry experts pointed out that with rapid growth of China’s economy, China has become the most important car market in the world. International auto giants are accelerating their strategic focus to China and there has been a competitive situation in Chinese car market. China’s own brands represented by Chery are seizing this opportunity to be bigger and stronger from the high-end brands and products to comprehensive layout of base and market. In recent years, Ordos achieved significant development relying on a wealth of resources, and the city has become one of the fastest growing cities in inner Mongolia even China. (Translator: Qinghua Wade)

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　　http://auto.sohu.com/20100520/n272226493.shtml