Chery Doesn't Plan Overseas Takeovers

Chery, one of the Chinese companies that were often seen as one of the candidates to tackle the global auto sector, says that it doesn't considering buying overseas companies in an effort to support its expansion.

"We have been offered many fancy proposals [by investment bankers]. Their business is to buy and sell," Chery chairman, Yin Tongyao, said in an interview for Sohu.com, according to Reuters. "They want you to get married today and split the next day, this is typically what investment bankers do...and we won't be hoodwinked."

Chery recently started feasibility tests for a new plant in Turkey that would be used to expand operations across Europe. The company is already searching for a site to host the future Chery plant and Pirolu says the land is projected to be acquired by the end of the year. The factory is scheduled to begin operations in two or two and a half years time.

Sedat Pirolu, an official at the Mermerler Group, Chery's Turkey distribution partner, said the models manufactured in Turkey will comply with all European regulations and will be addressed to several markets across the continent. Chery will invest up to $500 million in the new Turkish facility which, according to some preliminary figures, will have a production capacity of 100,000 vehicles and will employ between 5,000 and 6,000 people.

"The Chinese 'Chery" automotive firm has applied to Turkish authorities to make US$500 million of investments in Turkey, and open to world markets via our country," Turkey's Industry & Trade Minister Nihat Ergun said at the Frankfurt Motor Show in Germany last month.