Chrysler Seals Deal With Chinese Carmaker Chery

After several months of negotiations and in the midst of Chrysler Group’s divorce with the Daimler Group, Chrysler and Chery Automobile Co finalized their agreement today in Beijing to jointly develop, produce and distribute small and sub-compact cars.

Under the agreement, the Chery will manufacture the cars in China and the Chrysler Group will distribute them under the Jeep, Chrysler, and Dodge brands for North America, Europe and other major markets. Just before the boyz in white let the ink roll down the paper, Chrysler’s CEO Tom LaSorda said that the agreement with Chery will play a big role in the American car manufacture’s plan of doubling sales in the next three to five years. -Continued after the jump

According to LaSorda, exports of the Chinese made mini and sub-compact car will begin in Latin America and eastern Europe within 12 months while U.S. exports are expected to commence in mid-2009. However, the first model exported, a Dodge badged vehicle based on Chery's A-1 small car will not be exported to the U.S. or Europe.

Via: automotivenews

Chery: Chrysler Deal Still On

Despite a recent report on German newspaper Handelsblatt that said Chery wanted to re-examine a deal to build small cars for Chrysler due to the sale of the latter to Cerberus, the Chinese car maker has still got the hots for Chrysler. A Chery spokesman told Reuters today that the German newspaper had misquoted Chery’s general manager, Zhang Li, and that the earlier agreement with Chrysler, approved by DaimlerChrysler’s Supervisory Board in February 2007, was still on. According to the non-equity partnership, the Chery-built vehicles will be distributed under Chrysler and Dodge logos, primarily in North America and Western Europe. Via: Reuters

Chery to unveil Italian designed Shooting Sport Concept at the Shanghai Show

Chinese carmakers are learning quickly and with help from Europeans, they’re stepping up their pace. Take the three-door, four-seater Shooting Sport Concept for example. Created by Torino Design of Turin, Italy, the Shooting Sport could theoretically posse a potential “made in China” threat to BMW’s MINI. A little bit far fetched but you get our point. Via: Autoblog.com

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Official: Chrsyler Group approves small-car agreement with Chinese, Chery Motors

Theoretically and for the time being, the Chrysler Group is up for sale but that doesn’t mean that the Group has halted all its future projects. Today DaimlerChrysler announced that its Supervisory Board approved the framework of a limited partnership to develop small vehicles between the Chrysler Group and Chinese Chery Motor Company. Although this agreement has to be approved by the “almighty” Chinese government, consider it a done deal with the final paper work to be signed by the end of March.

According to DC, under the non-equity partnership, the Chery-built vehicles will be distributed under Chrysler brands, primarily in North America and Western Europe. -Continued: Click “Read More…” below to see the press release

PRESS RELEASE: Auburn Hills, Mich./Stuttgart, Germany - The DaimlerChrysler Supervisory Board today approved the framework of a limited partnership to develop small vehicles between the Chrysler Group and Chery Motor Company of China. The deal is still contingent upon approval by the Chinese government, but the final pact of the framework is expected to be signed by the end of March. Under the non-equity partnership, Chery-built vehicles will be distributed under Chrysler brands, primarily in North America and Western Europe.

Chrysler Group indicated that the partnership would allow the company to become a bigger player on the global automotive stage by giving it access to products in new segments more quickly, with less capital spending.

Small vehicles such as these will allow Chrysler Group brands to compete in segments in which the brands do not currently compete, and which are especially important in price- and fuel-economy sensitive markets. Some 67 percent of all vehicles sold outside of North America are in these segments. Chrysler Group's major competitors in the U.S. and Western Europe have similar arrangements with Asian manufacturers for vehicles in these segments.

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