Posted on Thursday 3 July 2008
Adding to speculation that Chrysler’s original deal with China’s Chery Auto to source a Chinese-built compact car for sale in the U.S. may be in trouble comes news that the Auburn Hills carmaker has now signed a memorandum of understanding (MoU) with rival Chinese carmaker Great Wall Motor (GWM). The MoU is for the exploration of long-term business ties between the two carmakers in various areas including distribution, components and technology.
The move is part of Chrysler’s greater strategy to increase its operations in overseas markets, especially in emerging like China. No other details have been released.
Chrysler currently sells more than ten vehicles in China but only four are actually built locally, reports Automotive News. It is still in a joint-venture with Chery Auto and recently finalized the deal to make compact cars under its Chrysler and Dodge brands.
GWM is one of China’s leading businesses and is the largest privately owned carmaker in the country. It specializes in SUV and utility models but has recently expanded into the MPV and small hatch markets, and is already exporting vehicles to Western markets.