Chery Automobile has signed with Russia's Avtotor to assemble cars for sale in Europe and is considering a US$200 million investment in a new plant, the South China Morning Post reported, citing industry sources. Avtotor, on the border of Lithuania and Poland, is expected to assemble Chery models in its existing factories. It has the capacity to make 70,000 vehicles a year, having made 16,500 cars, including Kias, BMWs, Chevrolets and Hummers last year. The region enjoys tax benefits like those in China's special economic zones. Founded in 1997 in Wuhu, Anhui province, Chery is the eighth-largest domestic car manufacturer in China.