Chery to enter next turn of negotiation with Chrysler

China's largest independent automaker, Chery, denied that its negotiation with Chrysler was reportedly halted, confirming it would soon back to the cooperation.

According to the German newspaper Handelsblatt, Chery has suspended the cooperation program with Chrysler in the wake of Cerberus Capital Management's takeover of Chrysler. "The report is wrong," said Jin Gebo, Vice General manager of Chery sales company, to the local media.

Some insiders exposed that the high-rank management of Chrysler flied to Wuhu, the city where Chery is based, to renegotiate the OEM deal. Chery had originally agreed with Chrysler to build a new A-segment car in China based on the brand-new Chery A1 model, which would be sold under the Dodge nameplate in Canada and Mexico, and potentially other overseas markets.

Even the secured agreement of cooperation continues to be effective, the details such as sales market, technology cooperation, spare parts supplying and distribution of interests are still undecided---the industry analysts are concerned that the deal will undergo changes after the inroad of Cerberus.