Chery Intends To Build Up Partnership With JAC

Shanghai, March 23, 2009: (Gasgoo.com) The restructuring and revitalization plan of automotive industry has been officially released recently. In addition to the rural subsidy policy, fuel-efficiency and new-energy vehicles scheme, domestic brands program, the plan has triggered an industry's trend of mergers and acquisitions via setting up new infrastructure system of electric vehicles and emphasizing the status of heavy-duty trucks, Shanghai Securities News reported today.

Yin Tongyue, President of Chery Automobile Co. Ltd., expresses the intention to cooperate with Anhui Jianghuai Automobile Co. Ltd. (JAC), whereas JAC has not yet declared their attitude publicly.

On March 19, Yin said that his company is pleased to be involved in the Four Small group for auto sector mergers and acquisitions. In fact, reorganization depends a lot on the collaboration between companies, but there is still large room for improvement in domestic alignment rather than overseas partnership. Since Chery and JAC are close neighbors in the same province of Anhui, so why can't they start an alliance based on the common grounds? It is foreseeable that the two parties will share common goals and mutual benefits in the coming days if a solid collaborative foundation is laid down.

To Yin's invitation, JAC has not yet responded officially. However, JAC's president Zuo Yanan recently revealed that it is possible for the company to form partnership with other enterprises, for example by manufacturing two vehicle brands' products in the same assembly line. In this way, the two sides can pool resources and avoid overlapping investments.

When Chery and JAC were trapped by the cooperation rumor, the other domestic auto brand Geely International Co.¡¯s president, Li Shufu found the company has been widely exposed to the spotlight on overseas acquisitions issues. Li said Geely will choose the right way for the company and start strategic collaboration under appropriate conditions.

For more information please visit http://www.gasgoo.com