Posted by meb at January 12th, 2008

China’s Chery Automobile, a major carmaker that exports to more than 60 countries across the world, will enter the Turkish automobile market in February.

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Mermerler Automotive is to introduce two new Chery auto models to the current Turkish auto market, which comprises more than 220 different automobile models from approximately 40 brands. Mermerler Automotive Chairman Yüksel Mermer, who also heads the Automotive Distributors Association (ODD), said at a press conference on Thursday night they did not import cheap cars because nobody would like to own a cheap but insecure and uncomfortable car. China was the fourth largest in the world’s fast-expanding automotive market in 2006 and plans to become the first by 2010. Drawing benefits from German technology in all phases of its production, Chery has also signed contracts with giant automobile companies like Fiat and Chrysler.

Mermer said this is the first time a Chinese company has taken the initiative to export cars to a European country. “Since Turkey is a member of the European Customs Union, Chery gives a great importance to Turkey,” Mermer also said, adding that the Chinese company is planning to export automobiles to Europe through Turkey because otherwise they would have to pay approximately 17 percent in fees for each car.

With the largest automobile manufacturing factory in China and an annual production capacity of 1 million, Chery produced 650,000 cars last year. “It is not easy to place a Chinese production in a specified place in Turkey, so we also used to have doubts; but when we strolled through the factory three years ago all our worries vanished. We thought that a joint venture with Chery would bring a great opportunity in the export and employment spheres along with its contributions to the automotive supply industry in Turkey,” Mermer explained. He also announced that Mermerler Automotive had three main objectives while signing association agreements with Chery: the companies’ reorganization in Turkey, potential export from Turkey to China and founding a Chery manufacturing plant in Turkey. “Our biggest aim is to establish a factory here which will enable export to other European countries from Turkey as soon as possible. We can also make investments benefiting from our successful automotive supply industry.”

Mermer said the process took a long time, causing a stir in public curiosity about when and how automobiles will come from China, because of tests performed in England for the European compliance conditions and the preparation of the institutional identity standards that all auto dealer’s of Mermerler Automotive are subject to. “The only reason for this late arrival is our well-rounded preparation. We have been testing them for the climate and road conditions in Turkey for two years,” Mermer said. He also said they are aiming to bring other models as well after being approved from Vehicle Certification Agency in UK. “Until now, we have inked preliminary contacts with nearly 50 motorcar dealers in Turkey, 26-27 of which are compatible with our standards,” he added.

Contrary to expectations, the head of the company did not inform the public about the prices of the automobiles, saying instead that these will be announced in February. “We are also planning to conduct promotional campaigns in the beginning,” he said. Asked whether the range could be around YTL 15,000-20,000 he replied: “Nobody would buy them if they were to be that cheap.” Upon a question of whether they anticipate any decrease in automobile prices after they enter into the market, Mermer stated that they expect an increase rather than a decrease since the prices had been sinking for the past three years already.

source: Today’s Zaman

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