Chinese media reports this morning say that Chery may well be on the look out for a respected European brand that is up for sale.

Chery have set themselves up as a major player in the self developed (i.e. Chinese brand) automaker in the past few years, going from buying old Ford UK production lines and rights to the Seat Ibiza Toledo in the late 90’s to developing some of the best looking Chinese cars in 2008.

Chery have excelled themselves at making cheap cars that look good, a stratergy that has worked well so far, however, it seems they wish to further themselves in the international market, and perhaps realize their Chery brand wont cut it for selling premium vehicles.

Since setting up an investment joint venture with the Isreali company, Isreal Corp, Chery have found themselves sitting on a pile of cash, 150 million USD to be precise, and a registered capital of 5 billion, Isreal corp reportedly invested 250 million into the deal. Chery are now investing heavily into R&D to make several upcoming models, including the Tiggo6 SUV, T2 series (a 3 door, 4 seater SUV), and an A6 sports sedan.

Chery’s Chairman, Mr. Yin, expressed that Chery is in its second phase of development, where it should become an international player, now that its status as a major domestic player is complete.

Media reports indicated that Chery could deepen its joint venture with Chrysler, or it could swing the other way and buy an established European brand, although no brands were mentioned, rumors have it that both Saab, and Volvo may well soon be changing hands. Could they have a Chinese future? Perhaps so.