Chery will rely on Organic Growth, CEO Chen Anning claims

Chery’s seeds for world domination? State-owned Chinese car manufacturer, Chery Automobile Co., will not be entering into the mergers a...

Chery’s seeds for world domination?


State-owned Chinese car manufacturer, Chery Automobile Co., will not be entering into the mergers and acquisitions market to grow its international sales, but rather rely on organic growth of home grown brands. Okay, all puns aside, this announcement from the CEO, Chen Anning, is very different from the underlining strategy of Chery’s private sector rivals, who have all been very firmly on the M&A trail. Chen's announcement comes after the industry was riveted by local rival, Great Wall Motors, announcing its interest in buying some or indeed all of Fiat Chrysler, which owns Jeep and Ram vehicle brands. Of course, SAIC owns the MG brand, which is supposedly designed in the UK, built in China and assembled in the UK. Then there is Geely’s Volvo or Proton or Lotus brands, and of course Foton’s Borgward.

Read also: China's Great Wall wants to buy American icon, Jeep.


Chery do indeed have a very aggressive expansion plan, using products that its claims to be designed and manufactured in-house. Currently, it already has a distribution network of over 1,100 showrooms globally, with representation in Turkey, Morocco, Brazil and Argentina. Just as important though is its overseas manufacturing bases, of which there are 14, including Brazil, Iran and Venezuela.

Presently, the company has no plans for North America, as it believes that the political and economic climate is far too unstable. However, like its national rivals, it does see Europe as the next place to find its products, where it believes to be more stable and more important than the poor old US of A.

Of course, European governments are all pushing for improved clean energy products, as is the government in China, and the upcoming Frankfurt Show is expecting to debut a number of new vehicles from the bigger players from the People's Republic. Strangely though, none of the bigger brands in China seem confident in using their established brand names or products that have become so ubiquitous across China.

Instead, Chery intends to launch a completely new range of products at the Frankfurt Show that are said to be more upmarket, more premium and higher priced, although still within the realms of reason (apparently). None of these, though, will be under the Chery brand and a new name plate will be used, although this has not been disclosed as of yet.

Geely Auto Group will also be at the Frankfurt Show with a range of products that would not be recognisable in China. Geely has been enjoying record growth since it bought out Volvo and its other brand, Lynk and Co., plans to kickstart sales in Frankfurt. SAIC, with their supposedly British MG brand, is also looking to kickstart sales in Europe.

image source: nation.com.ar
 

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