On November 12, Chery Automobile Co., Ltd. announced that it will fully authorize Malaysian ALADO to manufacture, assemble, distribute and import six types of Chery cars. This marks Chery's formal entry into the ASEAN auto market. ALADO is part of BSA Group, the largest aluminum alloy manufacturer in Malaysia, specializing in automotive trading and sales. In accordance with the phased execution plan signed by both parties, in early December, ALADO will import 10,000 Chery QQ cars in the form of imported vehicles, and then gradually switch to CKD as planned. The new factory will be located in Nanma. A well-known local automobile assembly plant in Fowey. ALADO plans to introduce Chery’s other three new models by 2005 and complete the introduction of all six vehicles in 2006. In addition, as an important strategic location for entering the ASEAN automobile market, the Malaysian plant will provide Chery Automobiles with resources allocation, service, and technical support for entering the ASEAN market. According to reports, the joint venture company will gradually recruit 40 to 50 franchise dealers in the ASEAN region, and this plan will be launched first in Vietnam and Indonesia. It is reported that Chery has signed contracts for exporting whole vehicles or CKDs with 23 countries around the world. The products include Fengyun, Qiyun, QQ, Sons of the East, and the upcoming SUVs and NEW CROSSOVER models. In 2003, more than 1,200 vehicles were exported, which accounted for more than 90% of China's total car exports. In 2004, it was expected to complete exports of 10,000 cars. By October of this year, Chery had accumulated more than 8,000 vehicles and accounted for more than 80% of China’s car exports. (Zhang Chen)
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