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China’s Chery confirms small-car deal with DaimlerChrysler

Viknesh Vijayenthiran

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China’s Chery confirms small-car deal with DaimlerChrysler

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Chinese state media is reporting that up-and-coming carmaker Chery has struck a deal with DaimlerChrysler to build small cars. The Beijing Morning Post quoted Wang Wei, a spokesman for Chery, as saying "we will formally release the details (of the deal) in one month, if not earlier."

DCX chief Tom LaSorda has previously admitted he was in talks with a Chinese carmaker that could expand their small car offerings. The new import would likely be sold as an entry-level Dodge subcompact and would fill the void of Chrysler’s lack of both an a or b-segment car in its portfolio.

The Beijing newspaper was also quoted as saying that Chery would become the new production center for Dodge and would supply the global market with small, economical, and fuel-efficient cars. A production version of the Dodge Hornet (pictured above) is a sure bet.

The news comes shortly after Chery’s deal with Malcolm Bricklin to import cars directly to the US fell through due to a disagreement over the way cars should be produced for overseas markets.

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Comment (1)

By Matt M JAX,FL Posted: 2/28/2007 5:33pm PST

For a hurting company it doesn't make sense to show an emerging global manufacturing power house your secrets and fund their learning experiences. This is a terrible idea and it is sure the demise of the "American" auto manufacturers.

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