New CEO Aims to Polish Qoros Image in China

Phil Murtaugh, who took over in February as CEO of Qoros Automotive Co., tells The Wall Street Journal he hopes to jumpstart the Chinese carmaker's image and sales in large part by doubling its dealerships and placing them in better locations.

When he arrived, Murtaugh tells The Wall Street Journal, "There was a severe lack of understanding of what was required to position the brand." Qoros sold only 7,000 cars in China last year, according to the newspaper.

Murtaugh says many early Qoros dealerships were located in low-traffic areas. He plans to boost the brand's outlets to 150 by year-end from 78 today.

Qoros is an 8-year-old venture between Chery Automobile Co. and Singapore-based Kenon Holdings Ltd., a recent spinoff from investment firm Israel Corp. The company's Qoros 3 lineup includes a small sedan, five-door hatchback and crossover. Prices start at 119,900 yuan ($19,300).

Qoros touts its cars as built to world-class standards and notes that its sedan won a top safety rating in the Euro NCAP crash test in 2013.