Israel Corp car venture picks up speed

Chery-Quantum is due to begin production of gasoline and electric cars in the fourth quarter of 2012.

Israel Corporation (TASE: ILCO) believes that its Chinese joint car manufacturing venture, Chery-Quantum LLC, will produce 500,000-600,000 cars within four year. Israel Corp. and Chery Automobile Company Co. Ltd. own the venture in equal shares.

Chery-Quantum is due to begin production of gasoline and electric cars in the fourth quarter of 2012. The initial production rate will be 200,000 cars. The venture is currently focusing on three models, in which it has invested $162 million.

Chery-Quantum is developing the models with Austrian carmaker Magna Steyr Fahrzeugtechnik AG & Co KG. The first stage of development, which included the rear axle for the future electric car, was completed in December 2010. Chery-Quantum currently has over 150 employees.

Published by Globes [online], Israel business news - www.globes-online.com - on March 30, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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