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China and Israel team to sell cars into Europe (IRLCF, VLKAY, DDAIF)

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China's state-owned car maker Chery Automobile Co. and Israel's biggest conglomerate, Israel Corp., are revamping their joint venture with the goal of targeting foreign markets amid slowing sales at home.

The newly rechristened "Qoros Automotive Company" is a 50/50 joint venture between the two entities set up in 2007 under the name Chery Quantum Auto Company.

The companies said that Qoros plans to introduce a compact sedan in western Europe and China in 2013, with an initial production capacity of 150,000 vehicles. Qoros cars will be sold through an independent retail network.

The launching of the Qoros brand comes amidst slowing sales and increasing competition in the world's biggest vehicle market, China.

Recently the China Association of Automobile Manufacturers, cut its target for sales growth this year to 3% from a previous figure of 5% -- which had in turn already been reduced from a forecast that the country's car dealers would sell 10% to 15% more autos this year than they did in 2010.

In that record-breaking year, car sales in China rose by a whopping 32.4% to just over 18 million units.

Because Qoros expects to target both Europe and emerging markets closer to home, it is taking competition to the doorstep of some of the biggest sellers of imported cars in China: Volkswagen ( VLKAY , quote ) and Daimler ( DDAIF , quote ). Israel Corp. itself is thinly traded here as IRLCF ( quote ). Chery is not.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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