Chery Got Credit
It seems Chery has been given a fat line of credit, thanks to the China Development Bank (CDB). The CDB has given Chery 740 million dollars to help Chery double its research capacity from 2006 to 2011. It seems like a drop in the ocean for what most big names spend in research, but that 740 million dollars will no doubt go along way in China.
Heres the story from Xinhua:
The China Development Bank (CDB), Chinas policy bank, has granted a line of credit totaling 5.8 billion yuan (740 million U.S. dollars) to Chinese carmaker Chery for research and development of new auto models during the 2006-2010 period.
The CDB and the Chery Automobile Co. Ltd., based in east Chinas Anhui Province, signed an agreement on the line of credit at the Anhui provincial capital Hefei on Monday.
With the loan, Chery is expected to improve its capabilities in independent research and development of new models and expand its production capacity.
To date, the CDB has loaned Chery 11.2 billion yuan to support the carmakers development of vehicle marques.
Chery sold 300,000 cars this year, giving it the fourth highest sales in China.