DaimlerChrysler's Supervisory Board today approved plans for a partnership with China's Chery Motor Company to develop affordable, small vehicles. The news follows the announcement of a preliminary agreement between the two companies in December.
Under the partnership, Chery-built vehicles will be distributed under Chrysler brands, primarily in North America and Western Europe.
Although the long-rumored Chery deal was expected to lead to a production version of the Dodge Hornet concept, Chrysler CEO Tom LaSorda said in January the projects were not related.
"The Hornet is a great statement of our design," LaSorda said. "It is also a statement that it’s something that we’re going to continue to take a look at, and depending on the business case going, we’ll look at that independently from this particular project."
The new small vehicles will allow Chrysler Group brands to "compete in segments in which the brands do not currently compete, and which are especially important in price- and fuel-economy sensitive markets," the company said in a statement. "Some 67 percent of all vehicles sold outside of North America are in these segments. Chrysler Group's major competitors in the U.S. and Western Europe have similar arrangements with Asian manufacturers for vehicles in these segments."
[Source: LeftLaneNews]
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