REAL OR RUMOR

RMB10b given to Chery to target Chrysler
By ANDREW SIEGFRIEDPublished: December 10, 2008 05:07 PM

Chinese car maker Chery Automobile has been granted RMB10 billion by the Export-Import Bank of China, or Exim Bank, for its acquisition of US giant Chrysler. Exim Bank governor Li Ruogu said the bank will offer full support for Chery's ambitions amid the global downturn to take advantage of the opportunities prsented by the delcine of US automakers. Citic Securities analyst Zheng Jun argued RMB10 billion was not enough for Chery to aacquire 100% of Chrysler but could acquire some of its assembly lines. Anhui province-based Chery exported 125,000 vehicles in the first 10 months and hopes to lift the figure to 400,000 per year by 2010. China's sedan sales dove 10.28% year-on-year to 522,800 units in November.
$1 = RMB6.87