Chery plans to enter the Canadian market next year, leveraging a trade agreement that permits the import of 49 000 Chinese electric and hybrid vehicles at reduced tariff rates. The company is currently exploring options for local production, including the potential acquisition or utilization of existing manufacturing facilities with available capacity.
Executive Vice President Guibing Zhang confirmed that the automaker is in discussions with Canadian investors regarding these manufacturing opportunities. While constructing a new plant remains an alternative, the company views it as cost-prohibitive under current import quotas. Chery is prioritizing partnerships to avoid the high capital expenditure of building new infrastructure.
The company has a history of collaborative manufacturing, having signed a memorandum of understanding with Nissan in the UK to potentially utilize its Sunderland site. Chery also operates a former Nissan facility in South Africa. These moves align with the company's strategy to expand its global footprint through existing industrial assets.
Canadian officials have expressed opposition to 'knockdown kits,' where vehicles are manufactured in China, partially disassembled, and reassembled locally. Industry leaders emphasize that true domestic production should involve significant local parts procurement and job creation, contrasting this with simple assembly operations.
