CRI听力：Global Ambitions of a Chinese Carmaker

Chery Automobile could be dubbed the little Chinese car company that could. An auto-manufacturer and exporter in China, Chery has exported its own brand of cars and car parts to more than fifty countries. The company has gone from strength to strength since it was founded in 1997 and is now one of China's fastest growing carmakers. But it's not content to stay still. It has ambitious expansion plans for both the domestic and international market. CRI's Dandan visited Chery's factory in the Wuhu Economic Development Zone in east China's Anhui province to hear the latest on the company's plans.

REPORTER: Last year was a big year for the Chery Automobile factory. China Association of Automobile Manufacturers says Chery ranked fourth in terms of domestic passenger car sales in 2006. Only three domestic joint venture companies outsold Chery cars in China. They were Shanghai GM, FAW-Volkswagen and Shanghai Volkswagen.

It was a paradigm shift in China's auto market, which has been dominated by foreign brands since the late 80s. But China-based auto manufacturers took the lead in 2006, overtaking Japanese companies and seizing more than 25 percent of the domestic market.

Beijing local Zhang Weiyu is part of the trend. He currently drives a Suzuki but plans to swap it for Chery's SUV, the TIGO. He says supporting a Chinese brand is one of the reasons he wants to change. But he cites other - perhaps more important - reasons as he tests the front seat of the TIGO out on the Cheery factory floor.

"The most important is that the SUV is so cheap, so I like it very much."

Yes, price is a major factor in China's fiercely competitive auto market. Chery's low cost models give them the competitive edge in China and abroad. So far, Chery has exported cars and auto parts to many regions around the world, including the Middle East, North Africa and Eastern Europe. Vice President Jin Yibo says Chery exported more than 50,000 cars last year, making it the country's leading auto exporter for the fourth consecutive year. He says the company will use its ability to produce cheap, reliable cars to expand its business in developed countries.

"Some developed countries don't produce cars for less than 50,000 yuan due to labor costs. We plan to use the relatively low- and mid-range models to open these markets and then gradually enlarge the market with our high-level products."

The expansion has already begun. Last year, Chery signed a lucrative deal to supply engines to Italy's prestigious Fiat car company. It also became the first Chinese auto maker to export engines to the United States since March this year.
They haven't managed to create cars that meet the stringent requirements of the U.S. market yet but Vice President Jin Yibo says this is only a matter of time.

"We have been looking for partners to jointly enter markets that have stricter standards in terms of environment protection and safety. We have set no timetable as full preparations need to be made. Entering these markets will help enhance the competitiveness of our products and improve our ability to produce technological innovations."

Chery is currently negotiating to produce cars for the U.S. market with American company DaimlerChrysler to produce cars that meet U.S. standards.

In the meantime, Vice President Jin Yibo says there are many opportunities for further expansion.

"We have many opportunities in rich countries with a less-developed auto industry. We can also bring our advantages into full play in countries that don't manufacture small, compact cars. For example, many cars in the Middle East market are second-hand or outdated."

Signing an agreement to build bullet proof cars in Uruguay with an Argentine car company in March this year was one of Chery's more unlikely projects. But it made Chery the first Chinese car company to invest in the auto manufacturing industry in South America. Yin Jibo says they expect to sell 25,000 bullet proof cars a year.

Closer to home, Chery plans to launch five to seven new models to help them reach their sales targets of 400,000 cars, with 70,000 for export. And Jin Yibo says they haven't forgotten the ladies, who buy more than half of the company's tiny QQ hatchbacks for their stylish design and value for money.

"We produced a new concept car in 2005, called the S16. I think girls will like it better than the QQ. This model was displayed at the 2007 Shanghai automobile show and will be put on the market at the end of this year."

Jin Yibo said Chery plans to offer the greatest variety of passenger cars on the market. It has around 4,000 staff engaged in product research and development to help it reach this goal. The company also intends to keep cooperating on technological development with foreign car companies.

Vice Director of Anhui's Bureau of Commerce, Zhang Jian, says the provincial government will support them.

"Sticking to homegrown brands does not mean closed development. We will continue to improve the investment environment and carry out international exchanges. Some US and European companies have expressed their willingness to strengthen cooperation in Chery's research and development. The Anhui Bureau of Commerce will provide more information to encourage our enterprises to go global."

You can already see Chery cars already cruising the streets in countries as far flung as Africa, Russia and the Middle East. As we wait to see the next phase in Chery's plans for global expansion, one thing is clear: They've certainly helped establish Chinese auto makers brand cars as credible players on the global market.