In 2004, Chery Automobile, a rising Chinese automaker known as the "black horse" in the industry, announced a major initiative to expand its engine production capabilities. Following the launch of three new models in the previous year, the company unveiled an ambitious plan to develop a full range of engines under its own brand. This strategic move marked a significant step forward in Chery's efforts to strengthen its core automotive technologies and build an independent brand. The plan involves two engine manufacturing plants. One of them was already operational, while the second, larger facility was set to begin construction soon. This expansion aimed to cover a wide range of engine displacements, from 1.3 liters up to 4.0 liters, ensuring flexibility for various vehicle models. Notably, the newly launched 0.8-liter QQ model was equipped with a Chery-branded four-valve engine, developed jointly with AVL, an Austrian engineering firm, and featured full independent intellectual property rights. Feng Wutang, head of the Chery Engine Plant, emphasized that this small-displacement engine was produced at Chery’s first engine plant, benefiting from technical collaboration with foreign partners and domestic institutions like Shanghai Jiaotong University and the Shanghai Internal Combustion Engine Plant. The second engine plant, currently under construction, is expected to be fully operational by the end of the year, with a planned annual capacity of 300,000 units. Jin Yibo, then General Manager of Chery, highlighted that the new engine line would include a broad spectrum of engine sizes, such as 1.3L, 1.6L, 1.9L, 2.4L, 2.9L, 3.0L, and 4.0L. Among these, the 1.9L and 2.9L models were diesel engines, while V6 and V8 engines for high-end vehicles were also part of the development roadmap. The investment in the first plant started at the same time as Chery's initial factory setup, costing 600 million yuan and initially producing less than 1.0-liter engines. At the time, the plant had an output of 34,000 units annually. The second plant required a much larger investment of 3 billion yuan, reflecting Chery’s long-term vision for engine production. As Chery expanded, it also aimed to enter international markets. While the company had made rapid progress, it faced challenges, including patent disputes that affected its brand reputation. Jin Yibo acknowledged the need for more than just momentum — a qualitative leap was essential. He stressed that while exterior and interior components could be sourced globally, the key to successful car manufacturing lay in mastering core components. Chery's future strategy focused on developing four core components with independent brands and intellectual property. Industry experts believed that Chery's engine expansion would enhance its competitiveness and long-term growth potential. However, the challenge ahead was to seamlessly integrate these core components with global design capabilities to ensure superior performance in the market. With this bold move, Chery was not only strengthening its internal capabilities but also positioning itself as a serious player in the global automotive industry.

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