Lu Jianhui, deputy managing director of Chery Automobile Co, has left Chery with a team of 200 people. Lu plans to start a brand new automobile company in Jiangbei Industrial Clusters, Wuhu, Anhui province.

Lu was one of the founders of Chery in 1997. He held senior positions in technology, purchasing, and marketing. In August 2012, Lu was moved to the parent company, Chery Holdings.

In the first half of this year, Lu began establishing the new company, forming Jiangbei project group in Wuhu with the 200 people who left Chery with him. Jiangbei project group will soon register a company name and trademark. More Chery employees may join the group with Chery's latest personnel adjustment.

Earlier reports said that Jiangbei project group is now negotiating with Chery on future cooperation. Chery may offer support in the initial stages after the new company is established. Yin Tongyue, chairman of Chery, also showed strong interest in the project.