Chrysler delays compact Chery indefinitely

If you hadn't already figured out that this would happen on your own, Chrysler LLC announced that its deal with China's Chery Automobile Company has been put on indefinite hold until the Chinese company and the Auburn Hills-based automaker sort out their individual financial futures.

Yes, North American carmakers aren't the only ones reeling from the global crisis, and while a small inexpensive car makes sense for Chrysler right now, it's a new model that will require new advertising money, dealer training, etc, not to mention the challenges in certifying a Chinese car to North American specs, the company just can't afford to fund.

A former Chery executive recently told Automotive News, "I wouldn't place much hope on it... both companies have their own problems to deal with, and both have run out of money."

Unlike GM which has had to detract formal announcements for upcoming models which have now been delayed, Chrysler never set a date for the small car's launch. It is expected that the American automaker will make due with heavily discounted Calibers, Compasses and Patriots for the time being, with its smallest, lowest priced sedan (outside of South America where it sells the Nissan Versa Sedan-based Dodge Trazo 1.8) being the midsize Avenger.