Chery to Fund New-Energy Vehicles, Opens 4th Plant

SHANGHAI - June 12, 2009: Chery Automobile Co, one of China's largest independent carmakers, said it would use the 2.9 billion yuan ($425 million) capital it raised from domestic investors to fund development of heavy trucks, new energy vehicles along with a fourth production plant project, China Knowledge online reported.

Chery spokesman Jin Yibo told reporters the current global financial crisis will provide Chery good investment opportunities to fund future growth.

Chery announced last week that it raised 2.9 billion capital from investors including Bohai Industrial Investment Fund Management Co., CDH Investments, China Huarong Asset Management Co. and a Shenzhen-based investment fund.

The Anhui-based automaker failed to meet its sales target of 480,000 vehicles last year, selling just 356,000. It is aiming to sell 419,000 vehicles in 2009.