China's Chery for SA market

Johannesburg - McCarthy Limited, a member of the Bidvest Group McCarthy has obtained the distribution rights for Chery vehicles for Southern Africa.

"Details of the models we will market in South Africa are still being finalised, but we are delighted to have signed an agreement with such a significant Chinese motor manufacturer," commented Jolyon Nash, McCarthy's executive director responsible for imports and distribution.

Chery is the fourth largest Chinese motor company with total output has already beyond the one million unit mark.

Nash said their McCarthy Value Centres will sell and service the Chery products. "We are also in the process of appointing a number of additional independent franchise dealers across the country," said Nash.

Chery was established in 1997 with backing from five regional, state-owned investment companies and in 2006 sold over 300 000 vehicles, an increase of 62% on their 2005 results. It employs more than 20 000 people and currently has an annual production capacity of 400 000 built up vehicles, 400 000 engines and 300 000 gearboxes.

As China's top car exporter for the past five years, Chery had exported 114 718 cars worldwide by the end of November last year, which was an improvement of 165% over sales in the first 11 months of 2006.

Chery has signed contracts with a number of major international motor companies which will see it supply more than 100 000 1,6- and 1,8-litre engines to Fiat, for use in cars assembled in China and other world markets.

It is also involved in the joint development of small and sub-compact cars with the Chrysler Group, intended for sale from 2009 in North America, Europe and other major markets under Chrysler brand names.

"We are most excited about the Chery distribution rights, and are confident that these high quality, attractive, and very affordable vehicles will find wide acceptance in the South African market," concluded Nash.