Chery Automobile of China has announced that it will enter into a joint venture with Israel Corp. — an Israeli holding company — to create a new automaker. Israel Corp. currently has holdings in chemicals and shipping. The joint venture — which nearly took a year for approval — will see Israel Corp. taking a 45% stake, which cost the investment company $225 million.
According to The Detroit News, Chery has production agreements with partners in Iran, Malaysia, Bangladesh and Argentina. Chery will also produce small cars for Chrysler.
No word on when the new brand will launch.
Just yesterday, Shanghai Automotive Industry Corp. and Nanjing Automobile Corp. of China announced a merger that will see SAIC taking over Nanjing’s British assembly plant.
