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Chery powering ahead in eco-friendly tech

By Wen Zongduo (China Daily)
Updated: 2008-07-01 13:38

Chery Automobile Co has been in the headlines since the end of last year when it entered into agreements with Quantum LLC, Daimler Chrysler and Fiat.

The now-familiar brand has long been a pioneer, but the partnerships led some in the industry to think it would follow in the footsteps of some domestic brands that faded into history after forming joint ventures.

"We don't want to make cars behind closed doors," said Yin Tongyao, Chery president. "Chery never refuses joint ventures but we have a purpose in running them. We must assume the majority control."

Yin said Chery will go more eco-friendly, more energy efficient and be much safer.

The auto industry started to draw foreign partner in 1983, often trading market shares for technology. The period was known for "cars from the world on the Chinese market".

Two decades later domestic auto companies are seeking a bigger say in joint operations. Chinese partners of foreign-invested ventures are heading down the roads they increasingly select while Chery and other home producers are exploring overseas markets.

Analysts note that Chery began a new era in joint ventures when it expanded overseas with its own products and brand. Chery's approach follows time-tested strategies of other auto powers.

This year, Chery is expected to market 6,000 gas-powered vehicles in the Middle East powered by components of Landi Renzo.

The automaker is embracing the world's best technology to generate its own brand. With Landi Renzo it has found harmony with a partner of similar far-sightedness.

"Landi Renzo has a complete product chain that powers our endeavor to spread in China," said Wu Wei, general manager of Beijing Landi Renzo Autogas System Co Ltd. "But we will not limit ourselves to integrating our designs in made-in-China products. We are pushing to spread all our products and above all, integrate our eco-friendly concepts into social values."

Some experts note a smart enterprise joins society instead of operating apart, a concept Landi Renzo has already put into action.

Ten years of vision have brought the company a convergence of location and people in the world's largest market.

Landi Renzo plans to transfer its environmental and new energy technologies to the country, winning a larger market.

As China evolves to emphasize new energy and a sound ecology, it will need more partners from the global village like Landi Renzo.