DETROIT (AP) — DaimlerChrysler's Chrysler Group and China's Chery Automobile have agreed on a plan for the Chinese manufacturer to build small cars to be sold worldwide.[/align]The letter of intent is subject to approval of Chrysler's supervisory board, which meets next month, said Chrysler spokesman Jason Vines.
If the long-anticipated partnership is approved by both sides, it would mark a major advance toward China's goal of taking exports from its fast-growing auto industry into the developed markets, including the United States.
The cars, which already are being designed, would be based on an existing model but would be modified jointly by Chrysler and Chery engineers, Vines said. Chrysler is taking the lead on the design and would ensure that the vehicles meet high quality standards, he said.
They would be sold at Chrysler dealerships in the U.S., Europe and elsewhere under a Chrysler Group brand as either a Dodge, Chrysler or Jeep.
Chery would build tiny cars known in the industry as "B-cars," but it also may build something larger for Chrysler, Vines added.
Chrysler has been seeking a Chinese partner to build small cars, saying it cannot make money building them in the United States because of high labor and other costs.
"We can't build one here in that segment. You can't make any money on it. That's why we need a partner," Vines said.
Chrysler showed off a small car concept earlier this year, called the Dodge Hornet, which is expected to show the design direction for the new small car.
The Hornet, a two-door hatchback, is smaller than the Dodge Caliber, the smallest vehicle in Chrysler's current lineup.
The move gives Chrysler a relatively quick entry into a growing segment of the car market where it now has no significant product, and it prepares the company in case gasoline prices escalate again to above $3 per gallon, said David Cole, chairman of the Center for Automotive Research in Ann Arbor. The average retail price of gasoline in the USA ended 2006 around $2.34 a gallon, or 14 cents higher than a year ago.
Vines said Chrysler would unveil a prototype "fairly soon," although no date has been set. Production would not start until after 2007, Vines said.
Chrysler would not say how many cars Chery would build and it would not reveal the financial terms of the agreement.
The deal also must gain approval of the Chinese government, Vines said.
Auto entrepreneur Malcolm Bricklin had been negotiating with Chery on a deal to bring Chinese-made cars to the U.S. market. But talks between Bricklin's company, Visionary Vehicles, and Chery broke off last fall.
Bricklin had initially proposed a joint venture to develop and sell Chery-made cars in the United States by 2007, but many industry analysts had questioned whether the Chinese automaker would be ready to meet quality and safety standards that soon.
"Both sides agreed a joint venture was not a good idea," said Visionary Vehicles spokeswoman Wendi Friedman Tush, adding that Chery wanted to modify existing cars and Bricklin wanted totally new products.
Visionary Vehicles is now pursuing other Chinese manufacturers and will announce an agreement soon, she said.
Chery, a medium-size but fast-growing automaker in the eastern city of Wuhu, already exports its own branded vehicles to roughly 20 countries, mostly developing nations in Southeast Asia, Africa and the Middle East.

From the 'Net

 

Almost everything Chinamakes is cheap and unreliable. They've got the production line down, but not engineering like Japan has. I would notpurchase a DCX productmade, assembled or had major parts from China. Sorry DCX, but I always pay the premium for something that I know will be worthy.

 

BULL****!

We make a pretty good profit on the caliber. Its all about greed on this one. High labor costs are just the excuse. Shame on you chrysler. Sell a piece of crap, and see how many repeat customers you get.

 

How is it a crap product if we produce the transmissions and motors and make the original prototypes? I seem to remember KIAs first few cars released hereand look at em now. If they sell cars under 10000 dollars new isnt that the most attractive part of all? It creates a lot of interest from buyers who cannot afford saya Chrysler 300 due to wages of under 20000 dollars or less. I am not saying Chrysler should go w/ the Idea but it wouldn't be the worst capital venture they have done. It worked for KIA/Hyundai surely it would work forthem

 

"We" won't produce any of it. It will all be chery. "We" will design it, maybe. But it will come from chery. Go ahead and look at it kia, its still junk as a whole. Garbage parts = garbage cars.

 

Extremely affordable/economical cars=sales.

 

http://news.windingroad.com/category...imlerchrysler/

Looks like it has happened go here: They've already signed their intent and awaiting the governments okay.

 

And who drives Kia/Hyundai? Losers, poor peopleor queers? Or all 3?

That may be partially true, but Sales=CUSTOMER SATISFACTION BEYOND PRICE

Customer satisfaction=Dealer reliability+car+car company reliability+people's opinions+own interest

Look at the 3 series (BMW). It's an expensive car, 30 grand it is stock. Why is it so popular? It's not affordable to the average or ultra economical. It is succeeding because of happy customers. Happy customers refer and are repeat buyers.

Another example. The entire GEO line. Geo Metro, Prizm, Tracker, etc. Those were very economical and very cheap, we bought ours for 12k. They were even reliable. So why weren't they generating sales then? Again, just because it's cheap doesn't mean a sale. Sales= customer satisfaction.

 

Thats true but if chrysler was designing the cars wouldn't you think that even in Cherys virgin stateside debut ofsay maybe the rumored"HORNET" wouldn't generate a ton of interest much likeits SEMApredecessor. I seem to recall the interest it stirredin this forum.

P/S GM has Saturn so it didn't make sense to have another Cheap car lineup Saturns used to be the same way GEO was.....cheap and economical. I used to have a SL2 great car but worthless to dealerships...that may not be so true now w/ the newer Saturn Line-up but in the 90s they were really the same.

 

soon nothing will be made here anymore and for what?... pure greedy schisters. its all about making that extra $ and not building anything with quality anymore, since the stratus line went to russia, and now a new concept line in china, forget it, i will only buy something built in this country, if it even lasts to that point, i bet chrysler and the dodge brothers are rolling in their graves right now over this