Jerry to produce cars overseas
19/2/2003 15:27
The Jerry Automobile Co Ltd, an affiliate of the Shanghai Automotive
Industry Group (SAIG), will cooperate with Iran-based SKT, a major producer of
auto parts, to build a production base for Jerry sedans, eastday.com reported
yesterday.
The two companies signed the cooperation contract in Wuhu,
Anhui Province.
It is the first time for a Chinese enterprise to produce
sedans abroad, indicating that the domestic sedan industry has international
competitiveness, said an industry analyst with the Anhui Automobile Industry
Association.
The new production base will be located in Mashhad, in
northeast Iran, and construction will be complete by the end of the year. Up to
30,000 sedans are expected to be produced in the first stage.
The Chinese
side will mainly provide technology transfer, including auto parts export,
factory design and sales network, said Ying Tongyao, vice general manager with
Jerry.
Jerry was cooperating with Iran SKT by the end of the year 2001
exporting sedans to Iran, which are very popular there.
The Iran
government approved the cooperation at the end of last year, the first approval
granted in 20 years for a whole-car production project.
Jerry sedans hit
the domestic market in 2001, and more than 50,000 sedans were sold last year,
accounting for 4.4 percent of domestic market share. Jerry launched three new
models this year, and sedan sales this year are expected to reach 100,000.
Wendy Zhang/ Shanghai Daily news
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