Chrysler-Chery production deal may finally be near completion
The ongoing saga of Chrysler's attempted partnership with Chery Automotive of China may finally be close to a resolution. According to business publication Information Times, a final deal for a joint venture may be near. The American and Chinese companies would each have a fifty percent stake in the manufacturing venture at a new plant with a capacity for 250,000 cars a year. The venture is expected to produce rebadged versions of the Chery A1 (pictured above) and A3 mini cars with Chrysler putting up cash for the deal and Chery providing land and technology. It's not clear if these cars will be offered in the U.S. market but if they are, then Chrysler will be taking a different approach to the low end market from Ford. Ford will be marketing the new Fiesta as a stylish, well-equipped small car that's expected to be profitable for the company. The Chery-based cars would likely be sold at a much lower price and they probably won't be considered a premium small car.
[Source: Gasgoo]
Reader Comments (Page 1 of 1)
Dave 3:41PM (3/10/2008)
Anyone have a clue what this gets Cherry? Borrowing from an "operationally bankrupt" company sounds like a play from a U.S. company playbook. Sad, but true.
Why not a BEV Chrysler? Should have gone to Smart...
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Wildgoosechase 3:58PM (3/10/2008)
This is a brilliant move for Chrysler. The vast majority of Americans simply do not have enough income or credit to afford hybrids or other advance technology vehicles. They will only buy what they can afford, and if it is a tiny “penalty box”, they will buy the cheapest and spend the rest on an LCD TV. This is the future of the US auto market after the new CAFÉ regs hit in 2012.
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KarenRei 4:08PM (3/10/2008)
For anyone considering getting a Chery:
http://youtube.com/watch?v=5kQGAK550LE
Make sure what you're getting is up to snuff. :P They're not exactly famed for quality.
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rar 5:19PM (3/10/2008)
Karen, I don't think that one will get the five star crash rating.
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riles11 7:34PM (3/10/2008)
Chrysler is ahead of the Industry. Even if the Chery Chrysler costs $3,500-$4,000 US dollars in China and is doubled in price to $7000-$8,000 and sold in US under 10-11K it would still be a home run for Chrysler and recognition for Chery in the largest auto market in the World at least for the next couple of years.
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Brent 2:18PM (3/11/2008)
Karen,
What is the point of posting that video? Every car sold in the US has to pass certain standards, that car is not made for the US.
Why didn't you post this video?
http://youtube.com/watch?v=EYn2Q4OGWYg
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knapp0564 11:54AM (4/20/2008)
I am all for an inexpensive high mileage small car. But, not at the expense of the worker exploitation and pollution from factories in China. Why can't american auto makers make such a car in the U.S.? Because, they can't pay their workers $1 an hour or less, and have their factories pollute without examption.
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