The largest Chinese car manufacturer Chery has announced that it will open a factory in Iran, thereby expanding its rapidly growing ties with foreign companies following the announcement of joint projects with Chrysler and Fiat.
The factory, valued at 370 million US dollars, will be built in Babol, northern Iran, in collaboration with Iran’s largest vehicle manufacturer Khodro and Canadian investment firm Solitac, Chery Automobile announced on its website. The factory will assemble Chery’s compact S21 sedan, also known as QQ6, from parts supplied by Chery, the statement said. The vehicles will be sold in Iran and neighboring countries.
This project "can strengthen Chery’s competitiveness in Iran or even the entire Middle Eastern market, and build Chery into a Chinese brand on the global market," said the company’s president Yin Tongyao. Chery signed a contract last month with the Chrysler group for the production of vehicles for export to the United States and other markets. Last week, Chery and the Fiat group announced an agreement to produce Fiat and Alfa Romeo models for sale in China. Chery will own 30 percent of the Iranian factory, while Khodro will hold 49 percent, and Solitac will have 21 percent. (Hina)
