Chrysler pops Chery
US giant courts Chinese newcomer in landmark dealUS-German giant DaimlerChrysler has agreed initial terms with emerging Chinese carmaker Chery to sell Chinese-built small cars in the USA and other regions.
The news comes in the form of a short statement from Chrysler Group President and CEO Tom LaSorda (pictured).
LaSorda today confirmed that Chrysler had "reached an agreement in principle with Chery Sales Co to distribute Chery-made small vehicles in the NAFTA [North American] region, European region and possibly other global markets."
The statement says the agreement is subject to the approval of the DaimlerChrysler Supervisory Board and Chinese authorities.
"Being able to partner with Chery represents a long-term solution to the challenges of how to profitably compete in the small vehicle segment," said LaSorda in announcing the landmark deal.
"This supply partnership is part of a new business model that is allowing us to introduce all-new products more quickly, with less capital spending. This announcement reflects the realities of a global industry and DaimlerChrysler's need to remain competitive in all segments."
Arguably China's best known and most 'internationalised' car company, Chery was founded in 1997 and began manufacturing a SEAT Toledo based car using plant purchased from Ford Europe. It was the first Chinese car company to export finished product (to Syria in the first instance!) and in 2003 built China's first foreign car plant in Iran.
Chrysler has a "well-established relationship" with the company. Chery is the largest third-party customer of the Chrysler/BMW Tritec Engine joint-venture in Brazil. Since 2004, Tritec 1.6-litre engines (as used in the MINI Cooper) have featured in two Chery models.
The new agreement will see the US and Sino companies cooperate on the development of new models which will be sold under Chrysler Group brands in the price-sensitive small car segments.
Chrysler Group designers will work with Chery on the new small vehicles which, according to today's announcemnet, are based on yet-to-be-announced Chery platforms. DaimlerChrysler engineers will also work closely with Chery to ensure these new vehicles meet all applicable safety and emission standards in markets where they are sold.
As noted, the agreement will see these models enter the USA. Though nobody is saying so on the record, it is highly likely that markets like Australia could also see Chinese-built Chrysler/Chery models.
It has been speculated that the Dodge Hornet (pictured, more
) could be one of the first new models to be built in China and marketed internationally.
Please see our Editorial Guidelines & Code of Ethics (including for more information about sponsored content and paid events). The information published on this website is of a general nature only and doesn’t consider your particular circumstances or needs.
