As we mentioned yesterday, the small car deal between Chery and Chrysler has been thrown up in the air a bit by Daimler's dumping of Chrysler.

Today, Automotive News (subs req'd) says that talks between the two companies have resumed now that everyone knows a majority share of the Chrysler group will be sold to Cerberus Capital Management. Details, unsurprisingly, remain vague at this point. Wang Wei, a spokesman for Chery, told AN that "We are still talking about producing a car together. can't give you any details, though."

The Chery/Chrysler deal will include the Hornet concept, first seen at the 2006 Geneva Motor Show. We still don't know all the details for sure, but the small car model that Chery builds in China for Chrysler will be sold in the U.S. as a Chrysler. Production might start in about three years, AN says.

[Source: Alysha Webb / Automotive News (subs req'd)]

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