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Car Forum / Chrysler Cars / February 2007

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Chrysler may build with China's Chery

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Jim Higgins - 27 Feb 2007 13:11 GMT
Chrysler exports jobs and production to China and shuts down plants here
while Toyota builds plants and cars here and hires Americans.  Who is the
"American" company?

Chrysler may build with China's Chery
http://www.detnews.com/apps/pbcs.dll/article?AID=/20070227/AUTO01/702270350/1148

Chrysler could receive the green light from DaimlerChrysler AG's supervisory
board as early as today to begin a ground-breaking project to build small
cars with China's Chery Automobile Co. for the U.S. and other markets.

Chrysler signed a letter of intent last year to form an alliance with Chery,
which would build small vehicles for Chrysler potentially under its Dodge
brand. DaimlerChrysler's supervisory board, which is meeting in Germany this
week, will review the plan and could give it the go-ahead, said people
familiar with the situation.

Separately, the automaker reportedly is negotiating to expand its
relationship with Chery to include auto parts and a wider range of car
models.

Chrysler lost $1.5 billion last year and has launched a comeback plan that
includes cutting 13,000 hourly and salaried jobs by 2009.

Chrysler spokesman Mike Aberlich declined to comment on the board meeting or
discuss whether Chrysler and Chery are in discussion to broaden their
relationship.

"We do currently sell four-cylinder engines to them from South America and
we've talked about a small car focusing on the b-segment," Aberlich said.
"That would be an arena that Chrysler Group doesn't play in right now."

Chrysler chose Chery in December to export small cars from China. The move
would give Chrysler, known for its beefy trucks and SUVs, a presence in the
growing subcompact segment to capture young buyers.

The automaker showed off its Dodge Hornet concept at the Geneva Auto Show in
2006, a car smaller than the Dodge Caliber that's sold in the United States
and abroad.

The automaker's plan hinges on the supervisory board's approval.

"Chrysler could be hedging its bets and continuing down the same road they
had started before talking to GM," said Rebecca Lindland, a Global Insight
analyst in Lexington, Mass.

--
"If they pull a knife, you pull a gun. If they put one of yours in the
hospital, you put one of theirs in the morgue."
Sean Connery, "The Untouchables"
rav - 27 Feb 2007 14:17 GMT
Doesn't mean that "Americans" will BUY those.

I will be in that group.

>Chrysler exports jobs and production to China and shuts down plants here
>while Toyota builds plants and cars here and hires Americans.  Who is the
[quoted text clipped - 41 lines]
>had started before talking to GM," said Rebecca Lindland, a Global Insight
>analyst in Lexington, Mass.
 
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