REV and China-Based Chery Holding Group Enter Joint Venture for the Manufacturing of Specialty Vehicles in China
December 05 2017 - 5:05PM
Business Wire
REV Group (NYSE: REVG), a $2+ billion manufacturer of
industry-leading specialty vehicle brands and leading provider of
parts and services announced today that it has established a joint
venture with China’s Chery Holding Group in Wuhu to manufacture
RVs, ambulances and other specialty vehicles for distribution
within China and select international markets.
Chery and REV will initially focus on RVs, with 6 models, and
ambulances, with 3 models. The joint venture will also explore the
development of other types of specialty vehicles. These products
will be sold in China and internationally through Chery’s existing
distribution network.
This joint venture will combine the strengths of REV, an
industry leading specialty vehicles manufacturer in North America,
and Chery, a leading auto manufacturing conglomerate and the
largest exporter of passenger vehicles in China, servicing 6.5
million customers worldwide. The joint venture will bring together
expertise in technology, manufacturing, marketing and management to
develop a leading specialty vehicles platform.
Tim Sullivan, CEO and President of REV Group commented, “This is
the culmination of two years of extensive research and study of the
China market. Several individuals on our management team have
extensive experience in China and we wanted to make sure we got it
right. This is a significant step in our strategy to move our REV
products into the international markets. We absolutely chose the
right partner and we couldn’t be more enthusiastic about the future
of our relationship with Chery.”
The China market has been evolving rapidly, driven by the recent
rise in disposable income levels. The RV industry in China will be
fueled by an increased level of spending on travel and leisure,
with strong support from the Chinese government. The ambulance
industry in China is poised for strong growth, with replacement
demand, more stringent regulatory requirement, an aging population
and increase in healthcare budget.
Chery and REV will begin immediately to develop the joint
venture facilities in Wuhu, Anhui Province. The first vehicles are
targeted to be made available to the market in second half of
2018.
Wuhu Municipal Government Officials, Mr. Yin Tongyao, Chairman
of Chery, Mr. Tim Sullivan, CEO of REV, along with other
distinguished guests attended the signing ceremony in Wuhu on
December 5, 2017.
About REV Group
REV (REVG) is a leading designer, manufacturer and distributor
of specialty vehicles and related aftermarket parts and services.
REV serves a diversified customer base primarily in the United
States through three segments: Fire & Emergency, Commercial and
Recreation. REV provides customized vehicle solutions for
applications including: essential needs (ambulances, fire
apparatus, school buses, mobility vans and municipal transit
buses), industrial and commercial (terminal trucks, cut-away buses
and street sweepers) and consumer leisure (recreational vehicles
(“RVs”) and luxury buses). REV’s brand portfolio consists of 29
well-established principal vehicle brands including many of the
most recognizable names within our served markets. Several of REV’s
brands pioneered their specialty vehicle product categories and
date back more than 50 years. Investors-REVG
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REV GroupSandy Bugbee, 1-888-738-4037 (1-888-REVG-037)VP,
Treasurer and Investor Relationsinvestors@revgroup.com
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