Report: Chery Automobile to List Shares

© 2006 The Associated Press | SHANGHAI, China — China's Chery Automobile Co. plans dual initial public offerings in Hong Kong and mainland China in 2008, a state-run newspaper reported Wednesday.

The report in the Shanghai Securities News, which is affiliated with the Shanghai Stock Exchange, gave no details about the size of the planned IPO and did not cite sources. However, it follows company officials' comments about a possible share offering.

Germany's DaimlerChrysler AG is in talks with Chery about possible joint production of a subcompact car for the Dodge brand, a step that could bring low-cost Chinese exports to the U.S. market.

Chery, whose best known model is the QQ minicar, is one of at least two major Chinese automakers ramping up production with hopes of launching models in the U.S. and other Western markets.

The company plans to raise its annual capacity to about 600,000 units in 2008 from 350,000 units now, the newspaper said.

However, Chery's original plan to sell Chery model cars in the U.S. by next year in partnership with flamboyant auto entrepreneur Malcolm Bricklin's Visionary Vehicles appears to have stalled.

Bricklin told reporters at the Beijing Auto Show that he did not expect China-made vehicles to succeed in meeting safety requirements and other regulatory standards before the U.S. market before 2009.

Chery, based in the eastern Chinese city of Wuhu, plans to launch sales of the QQ in Indonesia and already exports vehicles or assembly kits to the Middle East and other Asian markets