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Any thoughts that Chrysler had of getting small cars through a joint venture with China's Chery Motors are now officially dead. The Detroit News has been told by Mike Manley, Chrysler EVP for international sales, that discussions between the two companies have concluded and the companies will pursue their own directions. The slackening Chinese market has meant that Chery has been losing significant amounts of money there and can't afford to invest in expansion to engineer and produce products fo

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The long-awaited merger between Chrysler and Chinese automaker Chery will be finalized in Beijing tomorrow, Reuters is reporting. The deal floated in and out of the news as Chrysler was sold to Cerberus Capital Management by DaimlerChrysler AG, but now that's everything is about to be squared away, the importation of China-built vehicles to the U.S. will be that much closer to reality.

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.

Now that Chrysler has firmed up a deal with Chery Motors for the Chinese manufacturer to build small cars for them to sell in North America and Europe, the question comes about car they will actually build. China Car Times is reporting that the first model may be the Chery A1. The A1, it turns out is actually the Chery QQ with a different front clip, to allow Chery to sell the car outside of China.

Sorry, no new information on what the cars will eventually look like, but Chrysler group president and CEO Tom LaSorda did confirm on Thursday that, as we mentioned at the end of December, Chrysler has agreed to distribute small Chrysler group-branded vehicles made by China's Chery. The vehicles will be designed by Chrysler designers and will be based on yet-to-be-announced platforms.

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