A Chinese Independent Brand Seizes the First Bridgehead in Latin America

A Chinese Independent Brand Seizes the First Bridgehead in Latin America

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Chery Joins Hands with SOCMA, Argentina in Plant Building The ceremony for the signing of the contract between Chery Automobile Co., Ltd. and SOCMA, Argentina on establishing the joint venture “Chery Socma S.A.” Corporation was held in Diaoyutai State Guesthouse, Beijing on March 22. Under the agreement, OFEROL Plant, Uruguay would serve as a manufacture base for assembling Chery Tiggo from May of this year. It would be the first time that a Chinese automobile manufacturer had established a manufacturing base in South America. Although there have been numerous Chinese automobile manufacturers extending their sales networks to Latin America so far, which generally did so by export. However, Chery’s cooperation with SOCMA in plant building was the first time that a Chinese independent automobile manufacturer had established a manufacturing base in Latin America, marking Chinese independent automobile brands had officially sounded the call to march towards Latin America. Also, this, in addition to Chery’s automobile manufacture plants in Egypt, North Africa, Iran, Middle East, Ukraine and Russia, East Europe and Indonesia, Southeast Asia, marked Chery Auto had taken an important step in constructing its international strategic layout. As one of Argentina’s most important business groups with a long history of 50 years engaged in various areas such as real estate, railway, energy and investment merger, SOCMA successfully introduced Fiat and Citroen in the South American market and has mature sales networks and rich experiences. SOCMA expressed that Chery Auto is advantageous in independent development, quality and cost of products with its cars being significantly competitive in the South American market. SOCMA was fully confident that Chery would have a brilliant future in the South American market. It was said that the Chery-SOCMA joint-funded plant in Uruguay had so far completed all technological planning and had determined the plan for the improvement of such aspects as welding, painting and general assembly and utility power and logistics, and was to launch official manufacture in May of this year. The main products would be Chery luxurious SUV TIGGO and another model to be determined. Now, the parts and accessories used for manufacture are mostly from China, Argentina and Brazil, hopefully, the joint venture will accomplish localized manufacture of 60% of parts and accessories in three years. According to automobile insiders, Latin America is the world’s largest automobile consumption market apart from China, North America and the European Union, whether a Chinese brand can take roots in the Latin American market or not will be of inestimable realistic influence on its future role in the international automobile chain. Copyright © 2008 Chery Inc. All Rights Reserved.About Chery Sitemap Privacy Search