China’s eighth-largest carmaker, Chery Automobile Co., planned to begin exporting to Europe in 2007, eventually aiming to build cars on the continent as well, the Automotive News Europe reported.

“We have signed a letter of intent with an importer for Europe,” a Chery manager told the industry publication, without naming the importer.

State-owned Chery has already announced it will export up to 250,000 Chinese-made cars to the United States annually starting in 2007 via ex-Yugo importer Visionary Vehicles. Chery is perhaps best known as the maker of the popular QQ mini-car.

General Motors unit GM Daewoo said last month it was suing Chery over the QQ, alleging the model was a copy of its Daewoo Matiz subcompact that was sold in China as the Chevrolet Spark.

The worst fear of many carmakers is a potential onslaught of cheap Chinese cars in their home markets, particularly since many have exported their own know-how and technology to China where they build cars together with local partner companies.

(Shenzhen Daily January 12, 2005)