Chery and StreetScooter establish joint venture in Sino-Germany signing ceremony with a few agreements signed for trade and economic cooperation

On September 6, 2019, Chery Holdings Co.,Ltd. and StreetScooter GmbH, a subsidiary of SDeutsche Post AG, signed MOU in the Great Hall of the People in the witness of Chinese and German leaders

On September 6, 2019, Chery Holdings Co.,Ltd. and StreetScooter GmbH, a subsidiary of SDeutsche Post AG, signed MOU in the Great Hall of the People in the witness of Chinese and German leaders. The two parties plan to invest 500 million euro to establish a joint venture in China, which will build R&D Center, produce and sell eLCVs, and get into the logistic industrial chain.

Their partnership in logistics is one of the spotlights in the future of the JV. The global logistics network of SDeutsche Post AG and international auto production and marketing ability of Chery Holdings Co., Ltd. will form powerful synergy. While providing premium eLCVs, the joint venture will also generate considerable economic values and huge social values by providing solutions to smart logistics.

The MOU is one of the most important agreements of trade and economic cooperation when German Chancellor Merkel made her recent visit to China. Chery Chairman Yin Tongyue and CEO JörgSommer of StreetScooter signed the MOU on behalf of their companies. After that, they had in-depth discussions about future cooperation between the two companies.

According to the MOU, the joint venture will develop and produce eLCV suitable for the global market while providing last-mile transport service of post and parcels. The joint venture has designed capacity of 100,000 vehicles on the annual basis, whose products will be launched into the market in 2021. The two shareholders of the joint venture will facilitate localization of production, purchase and development. Relying on marketing channels of Chery, the two parties will engage in domestic sales and service. At the same time, the joint venture will promote eLCVs and relevant logistics business in the world. They will also establish EV R&D Center in China, develop electric refitting platform and relevant technologies, and provide L4 autopilot and solutions to smart logistics, etc.

Chery Chairman Yin Tongyue said the partnership between StreetScooter and Chery will create an opportunity for the two companies to explore global market, in particular the market in EU and China. It will also help Chery accelerate its presence in new-energy, intelligent and interconnected vehicle development on the basis of traditional fuel vehicles. Through openness and cooperation, Chery will integrate its strong resources in the world. While strengthening its traditional business, the manufacturer will make greater efforts to build the new-energy Chery, the intelligent and interconnected Chery and overseas Chery.

“This joint venture between Chery and StreetScooter marks a major milestone in our development”, said CEO Jörg Sommer of StreetScooter. They are excited to kick off cooperation with Chery to explore the world’s largest eLCV market in China, expand the global market and create values by providing new-energy products and solutions to smart logistics.

StreetScooter GmbH, a subsidiary of SDeutsche Post AG, is the leader in eLCV market in Europe. It owns the unique and world-leading design and production technology for eLCV chassis. SDeutsche Post AG is the transnational giant in logistic industry, which not only has huge demands for eLCV, but also develops the innovative business model featuring logistics service + energy service. Chery Holdings is a conglomerate cored on vehicle industrial chain, which owns mature vehicle product R&D and production platform system, supply and market system, thus gaining leading position in new-energy electric vehicles. The joint venture is conducive for the two parties to complement their advantages, thus enhancing the corporate profitability and market competitiveness, and pushing forward rapid growth of green energy industry.

If we look back at the performance of Chery in new-energy industry, we can find Chery always moves faster than its competitors. As China’s earliest developer of EVs, Chery has set up its business structure in electric passenger vehicles, logistics vehicles, buses and special vehicles, etc. In terms of electric passenger vehicles, Chery has maintained its position as the leading brand in the industry. Chery’s star model eQ1 is the first PEV model in China that relies on the positive development platform of PEVs and whose production and sales have exceeded 100,000 units. In the field of electric commercial vehicles, the Karry brand of Chery focuses on same-city logistics, artery/branch logistics, online car-hailing and other segment markets. In 2018, Karry took 20% market share in new-energy commercial vehicle market, taking the first place in the industry.

According to development plan of the two parties in the industry, the joint venture will also develop, produce and sell two to four-wheel mini EV. Together with the existing eLCVs, the mini EV will provide more smart logistics and vehicles of transport and traffic to meet social demands while building the zero-emission logistics industrial chain and shared economic ecosystem that integrates cycle economy, mobile travel and “logistics service + energy service”.