Chrysler and Great Wall to share technology, distribution
Above: Great Wall Peri
Most automakers are struggling with horrible US market conditions right now, but unlike competitors such as Toyota and Ford, Chrysler doesn't have sales in other areas of the world to fall back on. The Pentastar is looking to improve its fortunes overseas while also benefiting from low labor costs by partnering with the Great Wall Motor Company. The young Chinese automaker doesn't specialize in the small vehicles Chrysler needs here in the States, however, as the company's primary focus is on trucks and SUVs. The goal of the union is to share distribution channels, technology, and components, which should save both companies money in R&D and improve economies of scale. The deal is unrelated to a separate pact with Chery to produce a small, Dodge-branded car for sale in North America.
With sales down in the states by 28% in June, Chrysler appears to be in the most trouble of the Detroit automakers in the near term. Branching out to other markets to drive down costs and add sales could be the automaker's best hope for survival in the future.
[Source: Detroit News]
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Reader Comments (Page 1 of 2)
HAWC1506 4:20PM (7/06/2008)
Chrysler has signed their own death wish by teaming up with the Chinese. Chrysler was perceived as one of the lowest-quality cars ever made, now they just confirmed it.
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Brent 8:09PM (7/06/2008)
What would you recommend for Chrysler? They have to enter other markets.
William 4:12PM (7/06/2008)
Great Wall: the automaker that has been sued by Toyota and Fiat for infringing (directly copying down to the bumper parts) designs. The Peri is a copy of the Fiat Panda. They also directly copied the Scion xA and the Toyota Yaris.
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Aprime 4:13PM (7/06/2008)
Maybe they've got some good live axles to share.
DFN 4:57PM (7/06/2008)
Least they redesigned the front...which looks very Renault like.
wave54 5:47PM (7/06/2008)
And a Scion xB clone:
http://www.chinacarforums.com/forum/showthread.php?t=4018
William 9:01PM (7/06/2008)
You can see from the spyshots in the above link that Great Wall really does define "copy" in their cars. They used a Scion xB shell and just crafted on their own front bumper. Chrysler needs to look for a partner that can RAISE its quality, not lower it.
ML 11:59AM (7/07/2008)
Good point. But let them copy Chrysler(!). Maybe Chrysler can merge with them and become suriviable since Chrysler seems to constantly on the brink of collapse.
Brent 4:48PM (7/06/2008)
Chrysler has Canada to fall back on! Sales are rocking up North! haha
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Aprime 9:24PM (7/06/2008)
Not surprising, considering that 72% of us would consider a first generation (albeit, on our shores) Chinese car.
Kotse 4:54PM (7/06/2008)
Fiat Panda hack...
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sparkie 8:05PM (7/06/2008)
man, that's one shiny render - might be a driving hazard
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Ken Stamper 8:54PM (7/06/2008)
Yeah, looks dead-on like a Panda, with a hint of Nissan Note in the rear 3/4 window
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SteveRB 9:56PM (7/06/2008)
Based on last months results, Chrysler's sales would appear to have already encountered the Great Wall.
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I_Hate_China 11:10PM (7/06/2008)
There is a reason why Chrysler is trying to distribute all these Chinese cars, legal or not.
Basically, Cerberus is trying to get as many Chinese automakers interested in Chrysler/Dodge brand as possible by distributing their cars. When Cerberus puts Chrysler/Dodge to auction in a couple of years, there would be dozens of potential Chinese bidders driving up the price.
It is well-established that Cerberus would sell Chrysler to recoup its investment in a couple of years and Chinese are the only likely bidders.
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Michelle 10:43PM (8/22/2008)
First,I am a ordinary worker in Chinese automobile manufacturing chain. The newly-emerged industry is the origin of our bread and life insurance, in my city, around 200,000 people are involved in the auto-related business, both directly or indirectly.
Auto industry nearly saved this small city in terms of economy.
It help the goverment to ease down the unemployment pressure, it help labor force to earn their bread, it help people built up their hope for life, it help ordinary people like me bear the dream that life could be better if we work harder.
So what could be better than this?
No offense to you, my far far away frined.
Time is the best test tool for manufacturing Industry in long time round, if you look back upon the past decade, the Japanese car, the Korean car, were doomed to be failer in the developed countries, but now, just see your community, see your down town, life is changing, and they are coming to embarce the changes.
there is no either-to-be situation, it is a diversified world, and various market demands will yield different seeds, so you choose what you like.
Everyone is not destinied to be a great man, they all need to grow up from small baby to real man.
Just take it easy and have patience, if you are not player, just keep watch what is going on, they will never change their direction in face of your rumors or peeves.
Because you can not control their life.
Have a nice day and nice life, my friend.
Michelle
Philip 3:09AM (7/07/2008)
I will never buy a Chinese car no matter how good it looks, Id bet many will be poor quality and death traps, they will be the true throw away car.
Unfortunately everything we buy these days is made in China and look how long it lasts, case and point.
I'm sure there will be plenty of unsuspecting price shoppers that will buy Chinese made cars, Cost will appear to be cheap, but the fact is it will cost plenty in the long run as depreciation will be high.
Chrysler needs to sell renamed European Nissan cars like the Micra and Note not available here, Start selling quality and sales can only go UP.
Why do these companies have to design new cars, there are plenty of cars around the world that are already in Production that we could sell.
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Aprime 4:33AM (7/07/2008)
"I will never buy a Chinese car no matter how good it looks, Id bet many will be poor quality and death traps, they will be the true throw away car."
You could easily replace that comment with 'American' car, provided this comment would be made 10 or so years ago.
This is some of the things that eased China's way into our economy - they did just like the Americans, except for cheaper.
inteller 8:58AM (7/07/2008)
Well, now we have to hope that Chrysler goes bankrupt and ceases to exist before they can foist this Chinese junk on the American public.
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Rick 10:58AM (7/07/2008)
So Chrysler, dropping faster than Bush's approval rating, is teaming with a truck maker in hopes of improving it's position world wide? hahaha, another glorious decision.
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