DaimlerChrysler’s supervisory board today approved the partnership between Chrysler and Chery to develop a new small vehicle to be manufactured in China and exported to global markets. However, the deal will only be finalized with the agreement of the Chinese government, which is expected to make its decision by the end of March.

Back in December, Chrysler and Chery formed a joint-venture to assemble a new small car in China for worldwide export, but until now the only progress made was the signing of a letter of intent. The vehicle will be aimed primarily at North America and Western Europe.

Chrysler’s original plan was to export a vehicle based on one of Chery’s existing designs, but recent reports suggest that it'll likely build a production version of its Dodge Hornet concept pictured above.