Qoros Automotive, a 50-50 joint venture between state-held Chery Auto and Israel Corporation, has been officially launched at Shanghai’s former Expo zone. This new firm, which has evolved out of the four-year old Chery Quantum Auto Company, intends to launch its first cars in China and Europe in 2013.
According to Volker Steinwascher, a former Volkswagen AG executive who came out of retirement to become vice chairman of Qoros, Chery is a financial investor only. This leaves the Wuhu-based manufacturer free to develop its own models and keep the brand separate, he claims.
Go deeper with GlobalData
Discover B2B Marketing That Performs
Combine business intelligence and editorial excellence to reach engaged professionals across 36 leading media platforms.
The first vehicle to be launched by Qoros is to be a small sedan for both China and Europe, with a hatchback, an SUV and an EV to follow, the company claims. As for the name of the firm itself, “[it is a] new word meant to represent a company that stands for quality and works together like a chorus,” the companies said in a statement.
Qoros has no plans for the US market, where prices are “extremely competitive” and product liability issues remain a big concern, Steinwascher says.
The new firm says it will collaborate with Magna Steyr, TRW, Bosch and Valeo amongst other partner firms to bring the first cars to production. Further, a production plant with an annual capacity of 150,000 vehicles is to be erected in the city of Changsha. Production could eventually reach 300,000/annum, the company adds.
Israel Corp, Israel’s largest holding company, has its main interests in chemicals, shipping and energy.
Author: Glenn Brooks
