The buzz is wrong: LaSorda says no Hornet from China
Despite early assumptions, it looks like the Dodge Hornet has been swatted down for now. The news comes out of a talk Chrysler's media-only Firehouse blog recently had with Chrysler Group President and CEO Tom LaSorda.
Q – Will this car mean the death of the Hornet, the muscular small car concept that we saw at the Geneva auto show this year?
Tom – "The Hornet is a great statement of our design. It is also a statement that it's something that we're going to continue to take a look at, and depending on the business case going, we'll look at that independently from this particular project."
So that puts us back into the guessing game as to what the Chinese Chrysler product from Chery will be. Or even if it will be a Dodge.
LaSorda confirms, however, that the Chery-built car will be B-Class-sized. He goes on to address concerns about the level of quality we can expect from Chinese-built cars as well as political repurcussions of choosing to build a new car in a foreign country instead of the U.S.
Read the entire interview after the jump.
So that puts us back into the guessing game as to what the Chinese Chrysler product from Chery will be. Or even if it will be a Dodge.
LaSorda confirms, however, that the Chery-built car will be B-Class-sized. He goes on to address concerns about the level of quality we can expect from Chinese-built cars as well as political repurcussions of choosing to build a new car in a foreign country instead of the U.S.
Read the entire interview after the jump.
Here is the entire interview from Chrysler's The Firehouse blog:
Chrysler Group President and Chief Executive Officer Tom LaSorda spoke with TheFirehouse about the deal reached with Chery Automobile Co. of China to distribute Chery-made small cars in North America and other markets.
"If you look at the U.S. market, or even in NAFTA, all the B-segment vehicles are being imported from the Asia region. The major reason is their cost structure and their ability to engineer and design in those segments. And we really cannot compete, nor can any one else, making it in this region," he said.
Question – Why partner with Chery, or any Chinese car company for that matter, instead of building the car here in North America or at a DaimlerChrysler plant in China?
Tom – "Well, first of all, we're talking about a B-segment, which is a very small compact car, and if you look at the U.S. market or even in NAFTA, all the B-segment vehicles are being imported from the Asia region. The major reason is their cost structure and their ability to engineer and design in those segments. And we really cannot compete nor can anyone making it in this region."
Q – This being an election year, will this be used as a political statement about more jobs going to China?
Tom – "Well, first of all, I can't control what people say politically. What I can control is the fact that we are already exporting cars into China – the Chrysler Group. We're also producing locally the 300, the minivan into China, and most people don't know that we're exporting a large percentage of the componetries of these cars – the engines, the transmissions and major high-cost parts that are made by Americans and Canadians primarily – are being shipped over to these markets for us in China. I tell you, there are a lot of jobs being preserved by our growth in China and our exports there. And this (the Chery deal) will have no impact because we're not even involved in the B-segment today."
Q – Can China build a quality car that will satisfy North American consumers?
Tom – "Well, absolutely, and our role here is to ensure that our engineering and design and quality teams are working with Chery along the way to meet the stringent standards, not only in North America but around the world. And that teamwork will continue throughout this project."
Q – Will this car mean the death of the Hornet, the muscular small car concept that we saw at the Geneva auto show this year?
Tom – "The Hornet is a great statement of our design. It is also a statement that it's something that we're going to continue to take a look at, and depending on the business case going, we'll look at that independently from this particular project."
Q – How will this help the Chrysler Group's attempts here in the United States to shift some of the mix away from pickup trucks, minivans and SUVs with gas prices high right now?
Tom – "Well, the consumers are, quite frankly, just looking for choice, and the fact that the Chrysler Group doesn't even play in this segment, it's very important that we do. This is important for our growth here, but not only here in the NAFTA region - and I'm talking Canada, Mexico and the United States - but the European markets and other growth areas, where the growth is going. We need to follow with a cross-section of great cars and trucks across our whole portfolio. That's why we need this in this region as well. Our attempt here will help us in this region because the gas mileage of this car will be exceptionally good and we're looking forward to this coming in to help us as this segment is growing in this region and we just need to play a part."
Reader Comments (Page 1 of 1)
Carlos 9:41AM (1/03/2007)
What is wrong with this guy? You want a business case? Go to a toyota dealership and see how many Yaris' they're selling a month, or go to a Honda dealership and ask how much they make on each Fit. God I hate how short sighted DCX has become. Always looking to make a quick buck.
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Glenn 10:24AM (1/03/2007)
Could this new, small Chery B-class sedan be the badge-engineered car DCX plans to sell in the US and Europe?
http://www.globalautoindex.com/news.plt?no=1615
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C. McFeeny 10:57AM (1/03/2007)
Chrysler is silly if they don't produce the Hornet. I'm no market researcher, but everyone I have show the concept to has raved over it. I mean -- I do have concerns about the quality if it is manufactured in China, but the design is a big step forward for Dodge and the larger DCX company. The Caliber is not a small car and does not compete with the Honda Fit, Scion xA, Yaris, Aveo, etc... The Hornet would and it's aggressive, youthful styling would make it a great fit for the younger demographic that is certainly gravitating to this class of vehicles.
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zYpRea 11:48AM (1/03/2007)
I will be the first to say i hate small cars but damn it i would buy the hornet in a heart beat. bad ass looks and styling. I think they would be retarded not to try this car with the chery name.
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China Law Blog 4:10PM (1/03/2007)
As much as we may not like this, we do have to give Chrysler some credit for getting out in front of things on this. When will Ford and GM follow?
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i'd buy it 1:06PM (1/03/2007)
It would be the wrong move for dodge. I mean look at the mini, the xb, the yaris, the fit, people don't want small stylish cars that make since. nor would they pay premium for them. Sure u look at the car and say i want one but thats the kind of emotion that gets in the way of accountants and ceo's who need a survey and committees to tell them what to do. The great thing about china is they honor intellectual property and there is no way they would go forward with a car that looks like this with out the backing of dodge. Plus china doesn't have a market for small cars, they are big on trucks.
So my guess is we will get this car or something very, very, close. Hey we might get 1 from Korea.
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will 1:06PM (1/03/2007)
Making cars in China will be the death of the US automakers.
In case you don't know. In order for a foreign company to set produce a product in China, you have to enter into an agreement with the Chinese (usually government owned) company, and agree to share a huge amount of intellectual property. And these agreements usually include a clause that says the intellectual property becomes property of the Chinese company after so many years.
My point to all of this, is that Chrysler will teach Chery how to build a car, and then after a few years Chery will begin producing a car using Chrysler research. This has already happened to GM, and to numerous other companies in other industries.
The sad part is, Chrysler can build cars in the US, and build them for a reasonable price. It is just much easier to go directly to China, and make a buck today, instead of planning for the long term like the Japanese manufacturers do.
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Simone 10:52PM (1/03/2007)
Will,
Sorry to say, but Chrysler has had a joint venture in China for quite some time now. I remember going in 1996 and seeing Chinese-built Jeeps everywhere. Have the Chinese made any in-roads into the American market since then? Not really. And when they do, I don't think it's going to be as catastrophic as everyone thinks. I'm sure people predicted the same invasion of cheap Japanese cars 40 years ago. The Koreans also caused a stir, but again, nothing. The domestics and other brands are all still here. We just have more choices now.
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Andy 1:35AM (1/04/2007)
Dodge made the right choice. The Hornet is one of the ugliest cars this decade. The Nitro is bad enough. It's a love it or hate it design. Dodge needs less polarizing designs. I will agree with everyone on the strange affair going on between Chrysler and Chery.
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Frank A 8:34PM (1/03/2007)
The fact is DCX can not build a B-segment car in the USA and make money. None of the B-segment cars currently for sale in the USA are made in the USA. Why do some folks think DCX can do what all the other auto companies can't?
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Facts Not Opinions As Facts 4:17PM (1/03/2007)
Fit is selling Less than Kia Rio or Hyundai Accent. Started off storng, Carlos, but now they are newer the bottom in sales per month.
http://www.prnewswire.com/cgi-bin/stories.pl?ACCT=wardsauto.story&STORY=/www/story/01-03-2007/0004499108&EDATE=WED+Jan+03+2007,+01:37+PM
Toyota, though, is selling 6K plus yairs per month, and Scion is smokin' hot!
The Fit is selling maybe 1/3rd of what Yaris is,LOL.
PLEASE GUYS,. when you make statments, make sure they are factual.
Fit did great, until the past 3 months.
They can't even outsell the Forenza family of cars over at Suzuki these days.
I would rather Chyrsler develop compacts, or sporty cars like the tC(sold nearly 80,000 units in 06), vs some "toy".
roll-eyes.
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atl 2:48AM (1/04/2007)
Look for the Hornet to be built in Mexico by VW for 2009!
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clutchcargo 9:02PM (1/07/2007)
Actually that saves the Hornet name from being put on a crappy quality chery. I might be wrong but chery will have to prove it can build good cars. Chrysler has sold some of the least reliable American cars in their past. Hopefully they will not shoot themselves in the foot again.
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Chesters Liver 8:13PM (1/09/2007)
I know what there going to build!
Here's the scoop...
A small car with a big, typical dodge grill. Horrible plastic interior with lots of shiny bits. Stupid tv ads to follow.
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