Chery JV partner cuts investment

Israeli firm Israel Corp said it would cut the size of its planned investment in a joint venture with automaker Chery to US$500 million from US$900 million for 2009-2010, Reuters reported. Chery Quantum Auto Co, a joint venture between Israel Corp subsidiary Quantum and Wuhu Chery Automobile Investment Co, plans to make both conventional and electric cars. Israel Corp said it was reducing its investment due to a decision to produce fewer models. The company will put off building a special factory and will use Chery’s existing facilities instead. The two sides also renegotiated the terms of the joint venture, so that both hold stakes of 50%. Previously, Chery owned 55% of the company, while Quantum held 45%.