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Chery Automobile

Chery Automobile Intelligent Factory: +30% Tempo, +10% Capacity, -30% Labor

30%Production Tempo Improvement
10%Capacity Increase
30%Labor Reduction

The Challenge

Chery Automobile, one of China's largest independent automakers, faced mounting pressure to modernize its assembly operations as domestic and global competition intensified. Manual assembly processes created bottlenecks that constrained throughput, limited the factory's ability to flex capacity in response to demand shifts, and required a workforce-intensive model that was difficult to scale. In an industry where cycle time directly correlates with profitability and market responsiveness, the inability to accelerate production tempo without proportional labor increases represented a significant structural cost. The status quo left Chery unable to fully exploit its installed plant capacity.

The Solution

Chery partnered with Rockwell Automation to execute an intelligent factory transformation across its automobile assembly operations. The implementation centered on integrating advanced automation and process optimization technologies — including programmable controllers, motion control systems, and manufacturing execution capabilities from Rockwell's FactoryTalk and Allen-Bradley portfolio — into the existing assembly environment. The deployment replaced and augmented manual workflows with coordinated automated systems, enabling tighter sequencing of assembly tasks and real-time visibility into production status. Rockwell Automation served as the primary systems integrator, aligning the technology architecture with Chery's production requirements and ensuring interoperability with existing plant infrastructure. The result was a cohesive intelligent factory system designed to drive throughput, flexibility, and labor efficiency simultaneously.

Results

The intelligent factory implementation delivered measurable improvement across all three target dimensions simultaneously — an outcome that is operationally significant, as speed, capacity, and labor efficiency often involve trade-offs in traditional manufacturing upgrades.

  • +30% production tempo improvement: Assembly cycle times accelerated, enabling higher vehicle output per shift without expanding the physical footprint.
  • +10% capacity increase: The facility's effective production capacity grew through better utilization of existing equipment and reduced process idle time.
  • -30% labor reduction: Automation of manual assembly steps reduced direct labor requirements, reallocating workforce toward higher-value oversight and quality roles.

Together, these results demonstrate that intelligent factory investment can expand output while simultaneously reducing per-unit labor cost.

Key Takeaways

  • Simultaneous gains are achievable: Intelligent factory programs can improve speed, capacity, and labor efficiency together — manufacturers should not assume these goals are mutually exclusive.
  • Integrated automation is the foundation: Gains at Chery depended on tightly coordinated control systems across the assembly line, not isolated point solutions.
  • Established vendors reduce integration risk: Working with a single systems integrator like Rockwell Automation for both hardware and software layers simplifies commissioning and ongoing support.
  • Labor reduction requires workforce planning: A 30% labor reduction demands proactive change management — redeployment strategies should be defined before deployment begins.
  • Automotive scale amplifies ROI: Even modest per-unit efficiency gains translate to substantial financial impact at high-volume automotive production rates.

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Details

Industry
Automotive
Company Size
Enterprise
Quality
Verified

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