Joining Hands with Arvin Meritor, Chery More Confident of Internationalization

Joining Hands with Arvin Meritor, Chery More Confident of Internationalization

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Recently, Chery Science & Technology Co., Ltd. (hereinafter referred to as Chery Technology), a subsidiary of Chery Automobile Co., Ltd., officially signed a contract with Arvin Meritor Automotive Inc, USA (hereinafter referred to Arvin Meritor) in Wuhu, Anhui Province to jointly establish Arvin Meritor Chassis System (Wuhu) Co., Ltd. with a capital of USD 20 million. Arvin Meritor is also another parts & components manufacture giant of the world’s top 500 companies joining hands with Chery after Johnson Controls and PPG, USA.

It is reported that Chery Technology and Arvin Meritor hold shares of 40% and 60% respectively of the initial investment of USD 20 million in the establishment of Arvin Meritor Chassis System (Wuhu) Co., Ltd., the new plant is to be put into operation in August 2008 and is expected to have achieved a total sales of USD 150 million by the end of 2010. The newly-established company is mainly engaged in the design, manufacture and sales of shock absorbers, travelers, drive axles and chassis assembly. Chery expressed that the plant would become one of China’s most important chassis system manufacturing bases, Arvin Meritor also wished Wuhu base would become a major support of its business development in the Asia-Pacific region in the coming 18 months.

Arvin Meritor is a global company specializing in the design and manufacture of automobile parts and components with a long history of over 100 years; its major products also include clutch, car axle, brake, car door, etc. Headquartered in Trojan, Michigan, USA, the company is an enterprise listed in the Wall Street and holds Poor’s industrial index shares. Arvin Meritor, which has about 150 plants and research institutes all over the world, more than 35,000 staffs and boasts annual sales of USD 8 billion, is one of the top 500 enterprises listed by Fortune. Arvin Meritor’s strong brand influence, capacity for chassis technical R & D and rich experience in international market will obviously assist Chery in improving its quality ceaselessly and lay a solid technical foundation for Chery’s entry into the major markets in the world.

For Arvin Meritor ambition for developing the Chinese market, Chery’s attractive potential of market development and experience in localization operation will assist in strengthening its competitiveness in the Chinese market rapidly; additionally, Chery’s ambitious internationalization strategy is another important reason for Arvin Meritor’s settlement in Wuhu.

Phil Martens Global President and Group Vice President of Arvin Meritor Light Vehicle Systems attended the contract-signing ceremony. He expressed, “Chery is a Chinese fast-growing automobile manufacturer, the win-win cooperation between Chery and Arvin Meritor will surely lead to abundant achievements”.

Yuan Tao, Assistant General Manager of Chery Automobile Co., Ltd., expressed while answering a question raised by a reporter, “Arvin Meritor is a world-famous chassis parts designer and manufacturer boasting world first-rated technologies, the cooperation with them will further improve our product level and accelerate the step of Chery’s internationalization”.