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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

One of Chrysler's long term success trategies is to partner with as many other automakers as possible to share the burden of developing new cars that would otherwise sink the Auburn Hills-based company if it were forced to go it alone. For the longest time we've known that the Pentastar was in talks with various Chinese automakers to develop a small car, and so far the only fruit of that is a rebadged version of the Chery A1 called the Dodge Breeze that's been spied out and about. China Car Time

Chery officials say the pause in their discussion with Chrysler was so the Chinese company could get a better idea of the American's future. Now that Cerberus has taken over, Chery sees the coming years filled with puppy dogs and lollipops.

China Car Times says that Chinese Web site Autohome is reporting Dodge will re-badge Chery's A1 mini car for sale around the world. According to China Car Times, the A1 is a QQ3 renamed for export. The new name is supposedly intended to avoid any further confrontation with General Motors' lawyers over the whole QQ vs. Spark fight.

Yes, we know, it wasn't that long ago we reported Chrysler Group President Tom LaSorda saying Chery would not build the Hornet show car, but rather supply one of its own models for sales as a Dodge-branded small car in the Chrysler Group's product portfolio. Now Autoweek is reporting that Chrysler is none too happy with Chery's weak efforts to improve the production quality of its own cars. So instead of having Chery supply one of its own models, Chrysler may go ahead on its own with development

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.

Prospective Chrysler partner Chery Automobile has unveiled their first hybrid model at the Beijing International Auto Exhibition. Based on the Google translation of the press release, the A5ISG (yet another model name that rolls right off the tongue!) is a parallel hybrid, with a 1.3L four cylinder gas engine, permanent magnet motor and batteries. Presumably, the 519 MT is a manual gearbox.