Chery Expands Its Military Commercial Vehicle Production by 300,000 in 2010
Yesterday, the reporter was informed that the Chinese national automobile company Chery Automobile's commercial vehicle journey went smoothly. Chery’s production base for commercial vehicles is in the original Wuhu FAW Yangzi Automobile Manufacturing Co., Ltd. (hereinafter referred to as “FAW Yangziâ€). At present, prototype production of prototype cars has been completed and it is expected to start production in January 2008 with sales of 25,000 vehicles.
Chery plans to reach an annual output of 300,000 commercial vehicles by 2010, achieving a sales revenue of 10 billion yuan and a profit of 1 billion yuan.
Mass production in 2008
It is understood that the prototype vehicle for commercial vehicles is being developed by the Chery Automobile Research Institute of Commercial Vehicles. The sample vehicle has been successfully trial-produced and its code names are L11 and L12. Chery will use FAW Yangzi's factory and existing equipment to produce a small passenger vehicle chassis, assembling L11 and L12.
"Because of the long development cycle of the chassis, commercial vehicles can be mass-produced in 2008," said Chery insiders.
However, Chery has formulated a grand mass production plan: In 2010, Chery’s annual production of commercial vehicles reached 300,000 vehicles, with a sales income of 10 billion yuan and a profit of 1 billion yuan. Sales revenue of commercial vehicles accounted for 1/8 of the total output value. In 2010, the planned annual output value of Chery Automobile was 80 billion yuan.
Chery had no commercial vehicle business before. Chery's grand plan means that the commercial vehicle business will achieve a profit breakthrough of zero to one billion yuan within two years. Inside Chery, the commercial vehicle project has been regarded as a key step for Chery's new strategic layout.
Industry insiders believe that entering the commercial vehicle sector can achieve the maximum utilization of resources: a Chery own production chassis can reduce costs; Secondly, commercial vehicles can also make full use of Chery equipment and research capabilities; three large-scale procurement can reduce costs; four The competition in the commercial vehicle sector is not as intense as that of the sedan. If the positioning is reasonable, Chery will acquire a considerable market share.
Established a commercial vehicle company
Located across the street from Chery Automobile, FAW Yangzi was once the holding company of China FAW Group Corporation. Its total investment is 560 million yuan, and its annual production capacity is 30,000 chassis and 2000 passenger cars.
However, such a company has been losing money in recent years due to poor management.
Earlier this year, Chery Automobile Holdings Wuhu FAW Yangzi Automobile Manufacturing Co., Ltd.; on April 25, Chery renamed FAW Yangzi as "Chery Commercial Vehicle (Anhui) Co., Ltd." at the Wuhu City Administration for Industry and Commerce; and kept providing light to the old users. Based on the chassis of the car, the production line was completely transformed.
It is reported that the head of Chery's commercial vehicle chassis project is Yuan Yongbin. Previously, he worked for a company in Detroit, USA, for automotive auto safety systems. The chief person in charge of Chery Commercial Vehicles (Anhui) Co., Ltd. may be Li Xiaohua, who once served as deputy general manager of Changhe Automobile Company.
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