Beginning in 2012, Chery Quantum Auto will export cars to Europe with the assistance of Magna Steyr, according to a report from German newspaper, Financial Times Deutschland. Chery Quantum Auto is a 1.5 billion euro joint venture between Chery Automobile and Israel Corp. Chery Quantum will produce the three compact models that will be available in China and that will be exported to Europe.
A new factory in Changshu situated near Shanghai will produce these cars. This plant has an initial annual capacity of 150,000 units, increasing to 500,000.
The report further stated that these cars are being developed by Magna Steyr, which is a division of Canada's Magna International. It produces cars like the Mini Countryman, Mercedes G class and Peugeot RCZ in Graz, Austria.
The cars are expected to comply with Western standards and will cost from 11,000 to 15,000 euros. These models will be offered under a new brand known as Qoros. It isn’t clear yet how the company will market and distribute these vehicles in Europe.
The 50-50 joint venture specializes in alternative powertrains, says Autonews. Israel Corp., the largest industrial conglomerate in Israel, owns a 30% stake in Better Place, an electric mobility company that focuses in battery exchange centers. On Israel Corp.’s Web site, it revealed that Chery Quantum was formed to build and market a new, well-differentiated brand of premium, Western-standard vehicles.
Israel Corp. also said that the vehicles comply with high safety and environmental standards by merging Chery's manufacturing capabilities with Western design, engineering and safety standards. It added that the vehicles will initially be sold in the expanding Chinese domestic market, and later targeted for sale in Western countries.