That will limit competition, helping BYD and other small, hungry Chinese auto firms like Geely, Shuanghuan and Chery.

FORBES: Thanks, Now Move Over

Jaguar Land Rover agreed to form a joint venture with Chery Automobile that would manufacture and sell the U.K. auto maker's luxury vehicles in China.

WSJ: What's News

Chery has been building cars for just eight years but is already China's fourth-largest auto manufacturer, with sales of 300, 000 vehicles in 50 countries last year, and plans to sell 1 million cars a year by 2010.

FORBES: Magazine Article

As in most auto factories, the majority of final assembly is done by manual labor, but even here, Chery's operations seem less efficient.

FORBES: Chery Picking