Carlos Ghosn recently said that Renault/Nissan is developing a $3K car with Indian partner Tata. Honda said it looked at the same idea, but that it couldn't build a car with Honda values for that money. Chrysler has put itself in the Honda camp, ruling out the creation of a $3K car with Chinese partner Chery. Instead, Chrysler is working on a two-tier system that will build basic, inexpensive vehicles for developing countries and full-fat premium cars for the US, Canada, and Europe.

Chrysler's tie-in with Chery was put on hold when DaimlerChrysler put Chrysler on the block. Now that everything is settled with Cerberus, Chery is ready to sit down at the table again. Nothing's been signed and no timetable has been announced, but it appears that Chery-built Dodges (and possibly Chryslers) could appear before the end of the decade. Still, Frank Klegon, Chrysler's exec VP of product development, said he couldn't get a car built for less than $5,000, even in China. In response to Renault and Nissan's plans to build a $3K car for the Indian market, Klegon said "I have seen what you and I wouldn't necessarily call cars."

[Source: Autoweek]