As reported by China Car Times, Saturday (16/04/2011), Fund of it obtained by Chery of China Development Bank (CDB) will be disbursed from this year until 2015. Financial aid will help Chery overcome the increasing financial pressure due to rising costs of research and development (R & D) to make high-end cars.
Chery itself even considered selling car in China but the advantage that they can be very small. In 2007, Chery is only a profit of RMB 1.13 billion. In 2008 and 2009 profit Chery each even minus 194 million RMB and 556 million RMB.
That if no subsidy is calculated by the Chinese government, when calculated with the subsidy, profit Chery also is relatively small. In 2007, 2008 and 2009 respectively they only got 5.25 percent, 2.38 percent and 0.27 percent of revenues.
Poor revenue Chery suspected because the selling price of their cars is too low. That's why they want to make a breakthrough to not only play in cheaper car class, but it also plays in the precious and expensive medium car class .
They also create new brands such as Riich which produces cars and sedans and SUVs that produce Rely MPV cars. There is also a car brand which is also owned Chery Amulet though overall car brand Chery still control 77 percent of sales of this group.
That's why Chery currently boost sales and innovation in other brands owned to make for more profit. In 2011 Chery target sales figures rose 800 thousand units or 17.3 percent of sales in 2010.
