Shanghai (ZXZC)- On November 4, Chery Holding Group entered an agreement with REV Group, an American manufacturer of specialty vehicles. The two companies will set up a joint venture in Wuhu, Anhui province, where Chery is headquartered. The new company will produce specialty vehicles for China local market and global market.

The agreement says that in the early stage, the joint venture will focus on recreational vehicles and ambulances. According to the plan, the company will produce 6 recreational vehicles series and 3 ambulance series. After the first phase starts production, the production and sales are predicted to reach 5,000 units and the revenue is expected to exceed RMB 2 billion.

After signing the agreement, both parties will start the construction of the joint venture factory in Wuhu. Mass-produced products are expected to roll off the production line in the second half of next year.

Chery said in the announcement that the cooperation between the two companies signifies new efforts in its overseas expansion. REV Group boasts 29 brands and outstanding advantages in such segments as ambulance and fire trucks. Their cooperation will make full use of the technologies, talents, market and management resources on both sides to establish an international specialty vehicle brand.