Shanghai, December 9 (Gasgoo.com) Chrysler has officially dropped its plans to get into the small car market through cooperation with Chinese automaker Chery Auto, the Wall Street Journal reported.
Mike Manley, Chrysler executive vice president of international sales and marketing, said in a statement late on Monday that "both companies have since gone through major internal changes and evolution, resulting in different business directions and priorities versus a year ago."
"As a result, many of the original premises the two companies had when entering into the agreement no longer apply," he said.
Chrysler signed an agreement with Chery to sell Chery's A1 compact cars under its own nameplate in the United States and European markets back in July 2007 and relevant talks has been lasting for more than one year. Neither Chrysler nor Chery has disclosed any detail about their discussions, Chrysler said.
A Chrysler spokesperson said that coming to the end of the road with Chery Auto will have no affect on any of the more than two dozen other alliances and partnerships Chrysler is currently engaged in.
Earlier this year, Chrysler signed a deal with Nissan Motor Co., for the Japanese automaker to build small cars for Chrysler.
Gasgoo: auto parts source
