Cars

China's Chery Auto to build plant in Venezuela

(Xinhua)
Updated: 2011-05-31 10:26

BEIJING -- Chery Automobile Co will break new ground in Latin America and its factory of $200 million in Venezuela will start producing vehicles for the region later this year.

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Chery had signed a cooperative agreement with China Development Bank and the Venezuelan government to set up the new factory, which will be the second-largest that Chery has in Latin America, following its existing auto manufacturing facility in Brazil, a top company executive told Tuesday's China Daily.

Du Weiqiang, vice-president of Chery International, said the new auto-making plant will be producing 20,000 cars annually.

The new factory will be the first Chinese automotive plant in Venezuela and will help Chery - China's largest auto exporter and largest Chinese independent automaker - to ramp up its exports.

Under the agreement, China Development Bank will "grant loans to the Venezuelan government and Chery will transfer technology."