Chery Eyes Canada Production as Chinese Carmakers Circle U.S.

Chery Automobile Co. is considering establishing local manufacturing in Canada, building on the launch of sales in that market next year and putting one of China’s biggest carmakers on the northern doorstep of the U.S.

While access to the U.S. remains highly uncertain, Chery sees Canada as an important enough market to develop a deeper presence. Options being considered include taking over idle capacity at existing plants, and working with partners, Executive Vice President Guibing Zhang said in an interview at Chery’s headquarters in Wuhu, China.

“Even without the American market, Canada is a market that is worth having a factory for manufacturing,” Zhang said. “We are looking for the suitable opportunity and communicating on the possible formats.”

If the plan is realized, Chery could be the first Chinese automaker to have a manufacturing presence in Canada, a major coup for Prime Minister Mark Carney’s efforts to bring investment into the domestic auto sector. But it also risks further straining ties with the U.S., given industry watchers view Canada as a launching pad for an inevitable entry by Chinese electric vehicles into the American market.

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