Chery, Chrysler to jointly explore N American, European markets

Chinese carmaker Chery Automobile and U.S. Chrysler Group signed an agreement here on Wednesday to jointly explore the North American and European markets.
   
The cooperation deal will combine Chery's capabilities in developing and producing low-cost small-and medium-sized cars with Chrysler's expertise in branding and marketing, according to a joint statement from the two companies.
   
Young and promising, Chery is the best partner Chrysler could have found anywhere, said Chrysler chairman Tom LaSorda.
   
Chrysler will select several models developed by Chery and launch them in the North American and European markets under Chrysler Group brands after making some necessary modifications, said the joint statement.

Industry insiders say that the first vehicle exported -- based on the Chery A1 compact model that made its debut at the Shanghai auto show in April -- will be sold under the Dodge brand. It could go on sale as early as the end of the year, with Mexico and Southern Europe likely to be the initial target markets.
   
The two companies will also jointly develop new products based on Chery's small-car platforms.
   
"Cooperating with Chery will improve Chrysler's competitive edge in the small-and medium-sized segment," said LaSorda, adding that the partnership will allow Chrysler to roll out new products "more quickly with less capital expenditure".
   
"Chrysler can teach Chery a lot and the cooperation will strengthen Chery's i nternational competitiveness," said Chery chairman and CEO, Yin Tongyao.
   
Chery, a flag-bearer of Chinese indigenous brands, became the country's seventh largest automaker and fourth largest sedan producer in 2006, with sales of 305,200 vehicles, including 272,400 sedan cars.
   
It plans to double its exports this year, encouraged by last year's exports of 50,000 vehicles.