Report: Chrysler eyes Mexico, Canada for Chinese car

The Chrysler group is targeting Canada and Mexico as initial markets for a Chinese-made small car produced by partner Chery Automobile Co, DaimlerChrysler CEO Dieter Zetsche was quoted as saying.

"In a first step we are focusing on an existing Chery product only for Canada and Mexico," German magazine Auto Motor und Sport quoted Zetsche as saying.

"In a second step we want to bring out a car defined by Chrysler," he added in an interview published today.

The board of DaimlerChrysler last month approved an alliance between the Chrysler group and Chery which will develop and produce small cars that DaimlerChrysler cannot build alone at competitive prices. Chinese government approval is pending.

The 25-year accord lets the Chrysler group pick any actual or planned Chery model in the small to compact car segments to be sold in North America or Europe under a Chrysler group brand such as Dodge.

It also lets Chrysler give Chery blueprints for cars it wants to be built in China.

Zetsche said the group's premium Mercedes-Benz brand would not have a similar deal with Chery for small cars.