China's Chery forms joint venture for bullet-proof car

Automotive News / March 13, 2007 - 6:00 am / UPDATED: 3/13/2007 6:53 A.M.

SHANGHAI (Reuters) -- Chery Automobile Co., DaimlerChrysler AG's partner in China, said today it had set up a manufacturing venture with a Uruguay partner to make bullet-proof passenger cars in China.

Chery will provide the technology and take a 70 percent stake in the venture, with Uruguay-based Bognor Automotive Manufacture and Assembly holding the reminder, the Chinese company said in a statement.

Chery said the bullet-proof cars would be based on its Eastar sedan and sold mostly in overseas markets, although it provided no immediate information on sales or production targets.

With few production facilities overseas, Chinese carmakers, eager to make a name globally, have been teaming up with foreign partners, mostly in developing countries, to make vehicles targeting the local market.

In December last year, Chery reached a landmark deal with DaimlerChrysler enabling it to build vehicles under Chrysler's brand for sale in the United States and Europe.

The fast-growing Chinese automaker has also held talks with Fiat on expanding their ties following an earlier engine deal, a senior Chery executive told Reuters in October.