One of China's largest car makers has backtracked on production of subsidiary brands.
Aligning the brand - the Chery Tiggo Image: Chery International |
Chery Motor Co has announced a reform program that will halt production of its subsidiary brands. With almost immediate effect, the company will only use the Chery brand name for its vehicles in a bid to conserve cash and begin re-branding itself with a new logo.
The Chinese manufacturer launched the multi-brand strategy in 2008, creating numerous offshoots of popular SUVs and other increasingly specific models.
However, the company soon found the plan overextended the core organisation and decentralised its resources, hurting competitiveness.
The latest reforms will see the parent company absorb production from subsidiary brands and reduce its offering to 11 or 12 different models. Part of the latest plan also calls for a major staff downsizing from 3.3 million workers to 2.4 million.