Filed under: Economy, China, Hatchbacks, Chrysler, LLC.
Chrysler and Chery finally hook up: a global small car is born
After many, many months of courting, DaimlerChrysler and China's Chery Automobile Co. are now officially holding hands. The Chrysler Group CEO Tom LaSorda has signed a letter of intent with Chery to have the Chinese automaker produce a global small car for the American wing of DaimlerChrysler. Of course, nothing will happen until the deal is first approved by DaimlerChrysler and then, more importantly, by the Chinese government. Chrysler's PR head Jason Vines told Automotive News, however, that once everyone signs off on the deal, manufacturing in China would begin quickly "in automotive terms." The most likely candidate for Chrysler's global small car is the Dodge Hornet Concept (shown above) that debuted at the 2006 Geneva Show, though Chrysler hasn't officially decided what car it will have produced by Chery or even under which brand it will be sold.
While Chery and other Chinese automakers have been trying for years now to break into the U.S. market with their own line of cars, it appears that the first Chinese cars to set rubber to road in the U.S. will be wearing a domestic badge. Some opponents of the deal might call this the worst kind of job outsourcing, but Chrysler will no doubt get a small car to sell sooner and much cheaper by working with Chery in China.
[Source: Automotive News]
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Reader Comments (Page 1 of 2)
aaron 1:10PM (12/29/2006)
should be a good thing. the potential world market here is obviously large.
DCX can help chery along, and chery should be able to provide a low cost avenue.
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Michael Karesh 1:18PM (12/29/2006)
I'm very interested in tracking reliability on this model. If I can get many into the panel quickly, as I have with a few recent introductions (Aura, Versa, Caliber) initial results will be available 4-6 months after the car goes on sale.
http://www.truedelta.com/reliability.php
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Steve 1:32PM (12/29/2006)
"These colors don't run, Ricky"
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Bob-o 1:38PM (12/29/2006)
Daimler Benz should file for divorce ASAP. They're profitable on their own...why should they be forced to be part of this experiment?
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JON C 1:46PM (12/29/2006)
the Chinese gov't is posturing with anti-american/ anti-Isreal terrorists to gain influence with oil-rich mid east governments.Outsourcing makes for strange bedfellows
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Fazzster 1:48PM (12/29/2006)
I don't want to sound anti-Chinese because the people themselves are very good people but this is disgusting. We have many Americans dead and burried fighting against communism over the decades and we now embrace the Chinese as if nothing happened. Have we no shame. What about the human rights abuses perpetrated daily by the Chinese government. We have an embargo on Cuba yet we want the Chinese to make a car for us? I can tell you from personal experience, the adventure known as Chinese manufacturing is very scary. Even scarier than Detroit. The only saving grace will be the Germans ability to guide them along the way otherwise these cars will suffer from the poorest assembly quality since the K car. Good luck to the execs in charge of making this happen and good luck to the American who buys one.
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Rene Curry 1:52PM (12/29/2006)
This is a very significant story.
This changes the entire automotive North American landscape. Now all the other manufacturers can justify shipping Chinese manufacturerd vehicles to the North American market for competitive reasons.
The China government pushes exports and have been putting restrictions on foreign direct investment for their domestic automotive sector. Additional FDI can only be justified with 80% growth in their domestic market. This form of FDI would probably be exempt.
The flood gates are now open.
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Jeremy Clarkson is an Idiot 1:54PM (12/29/2006)
So much for a Chrysler comeback. If the company's partnering up with a Chinese company sued by everyone for ripping-off designs, Chrysler's future is oblivion.
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mavkato 2:09PM (12/29/2006)
any bets on the Chery version of the same car coming out at about the same time ala the Chevy Spark/Chery QQ?
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Steve Ricken 2:17PM (12/29/2006)
to Fazzster:
You do realize that the Chinese have been selling products in the US for a long while now. What does China do with all the money they get from selling the US so many goods? Why, they buy US bonds. That have billions invested in the US right now, and if they were to sell all those bonds back to the US, we would be so far in debt, we'd be gone.
Those tricky communists!
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saru 2:43PM (12/29/2006)
never gonna make it, its design is craetive , looks ok but CHERY + CHRYSLER this is a formula for failur, lets see how it goes everything deserves a chance.
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jgp 3:26PM (12/29/2006)
And another market falls to the communists...
*sigh*
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Bruce Lee 3:29PM (12/29/2006)
I'm glad to see the venture between these 2. Chrysler needs a low cost car besides the PT Cruiser. I hope they build the Dodge Hornet, I asked my 18 yaer old son and his friends what they thought of the Hornet, they all agreed that it was cool and needed to be built. there are not enough choices in the car market for young adults they stated. If Chrysler and Chery can keep the cost of a decently equipped Hornet around 10 to 13,000k, this car will sell.
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UAW 3:37PM (12/29/2006)
To Fazzster:
First of all, I don't think any business person would mix business with politics/history, at least not to your extent. So yea, many Americans sacrificed their lives fighting communists. What about Pearl Harbor? Guess what the best selling car in America is? Toyota Camry! Remember what the German Nazis did to their European neighbors? Now you want them to guide Chrysler to the right path? Oh yea, name a war where the US directly fought against China.
From a business/consumer perspective, I'm very excited about this little car. It provides American car buyers with a new option. It helps America reduce its dependence on foreign oil. It gives Chrysler a small car that they disparately need to compete with their Japanese counterparts. It also gives Chery a great opportunity to enter the US market.
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Puffy C 4:00PM (12/29/2006)
Money trumps all. If DC could make $1 but it would cost the future security of all of America, which do you think they'd choose? Right, the $1. That's how corporations work. That's also why we have goverments that are suppose to oversee all of this - too bad all they're interested in is the $1 as well.
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atl 4:04PM (12/29/2006)
They would be smart to revive Plymouth brand & not tarnish a Dodge brand if quality can't be up to snuff!
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Brian Dreggors 4:32PM (12/29/2006)
Who thinks the old K-cars will not only look better but be more reliable?
I do.
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Rene Curry 4:39PM (12/29/2006)
I think it is a misconception to consider China a purely communist country. It is now more of a centrally planned government/economy. In a short time they have done an amazing job! It took the US 100 years to be where it is today. It took Japan 45 years. It looks like China will do it in 20!
The China government knows they need to create prosperity to stay in power and they are performing. There are still a lot of problems, but look at the trend.
The point is the China government does everything possible to support it's industries while the US only thinks of it's political position.
I question the Daimler's strategy of providing all the design & technolgy to make the car. This will bite them in the future unless they can buy Chery. (which is not allowed at this time)
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lavardera 5:19PM (12/29/2006)
the only way to offset questionable quality is low prices and long warrantees.
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kab 6:14PM (12/29/2006)
So, is Wal-Mart going to start selling cars?
This is another fantastic step towards solidifying our status as the #1 service economy on the planet.
And to Fazzler, you should know by now, given Americas past relation with Mr. Hussein for example (or did everyone forget that one?), just how much bad can be overlooked by our government when it proves beneficial to them.
Truly, it is entirely about the $$.
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