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Chinese automaker Chery said Monday that it will set up a joint venture with a US-based Fortune Global 500 company to produce automotive interiors in China.

 

The joint venture, to be located in Wuhu, in East China's Anhui Province, will be equally funded by Chery Automobile Co., Ltd. and Johnson Controls Inc.

 

Chery will acquire technical know-how from the American company in order to improve its auto parts supply system and make its vehicles more competitive in international markets, said Yin Tongyao, chairman and general manager of Chery.

 

Johnson Controls Inc. is the world's leading supplier of automotive interior systems.

 

The company has established ten joint ventures across China to produce automotive interiors and two technology centers in Changchun of Jilin Province and Shanghai. It has a dominant position in the Chinese market for car seats.

 

Established in 1997, Chery is one of the ten biggest automakers in China and one of the few Chinese companies that successfully produce its own models rather than manufacturing foreign brands under licence.

 

The Wuhu-based automaker sold 189,100 cars in 2005, an increase of 118 percent from 2004, with 18,000 exported to more than 30 countries.

 

(Xinhua News Agency November 20, 2006)