Chrysler signs with China

Chrysler finally went and did it.

Chrysler has signed a deal with leading Chinese automaker Chery, to manufacture small cars in China and then export them to the U.S. (as well as other markets).

The first vehicle on the table will be based on the Chery A1 compact sedan, but sold as a Dodge.

Step 1 in the Chrysler-Chery plan calls for the car to reach, within a year, less demanding markets... either Latin American or Eastern Europe, at an estimated cost of $10,000.

Eighteen months later the cars would reach North America and Western Europe. Chery has also said that it could move up its U.S. plans to 2008, and lower the price tag to $7,000.

Says CBS News:

   

Tom Lasorda, Chrysler chairman, said, “As of today, we're committed to building vehicles here for export. We will combine Chrysler's research and technology and global reach with Chery's lean manufacturing.”

   

Yin Tongyao, Chery CEO, said the deal gives his company the opportunity to improve its skills at it tries to expand exports of its own models. “Chery is still young, so we should learn from Chrysler and improve our own competitive edge in the near future.”

   

Both said that will jointly develop future models, "probably with Chrysler styling on a Chery platform".

Chery is a relatively newcomer to the auto industry, barely ten years old, though they are the fastest growing carmaker in China. Last year they produced 350,000 units, and plan to increase that by 10% this year.

Chery previously had a deal with Malcolm Bricklin's Visionary Vehicles (of Yugo "fame"), who was to bring Chinese cars to the U.S., but that went south and in fact the two are now in litigation.

Tags: Chery, Chery Automobile, Chery Automobile Co., Yin Tongyao, Tom Lasorda, Chrysler, automotive, auto industry, automotive industry, China, Chinese auto industry, Chinese automotive industry

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