Manufacturing News

Chery, Israeli firm cleared to build sedans, SUVs

A joint venture by Chery Automobile Co. and Quantum LLC, a unit of Israel Corp. of Israel, has been approved by the Chinese government to build sedans and SUVs.

The joint venture, Chery Quantum Automobile Co., will build 150,000 vehicles a year, of which 40 percent will be sold outside China, according to a document released by China's National Reform and Development Commission, the country's highest economic planning agency.

The venture will be based in Changshu in east China's Jiangsu province.

The vehicles will be fitted with turbocharged engines supplied by Chery. Details about the vehicles were unavailable.

Chery Quantum, incorporated in 2007 in China, initially planned to build a plant in Wuhu of east China's Anhui province where Chery is based.

Neither Chery nor Quantum has explained why the plan changed and why the plant would be built in Changshu.

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