Chrysler Signs Deal With Chinese Automaker

Chery, China’s Biggest Automaker To Manufacture For North American Market

(AP)  Chrysler Group signed a deal Wednesday with China's biggest automaker, Chery, to manufacture small cars to export to the United States and other markets.

The deal marks the first attempt by a major U.S. automaker to use China as a manufacturing base to serve world markets.

The companies expect to export their first vehicle within a year to Latin American or Eastern Europe, and models should reach the United States and Western Europe with 2 1/2 years, said Tom LaSorda, Chrysler's chairman.

“As of today, we're committed to building vehicles here for export,” LaSorda said at a signing ceremony conducted at a Chinese government guesthouse. “We will combine Chrysler's research and technology and global reach with Chery's lean manufacturing.”

The deal is part of Chrysler's effort to cut costs and become more flexible through manufacturing arrangements with local partners around the world.

Chery, founded in 1997, is China's biggest and fastest-growing automaker, with output last year of 350,000 vehicles.

The Chrysler deal gives Chery an opportunity to improve its skills at it tries to expand exports of its own models, said the company's chairman and CEO, Yin Tongyao.

“Chery is still young, so we should learn from Chrysler and improve our own competitive edge in the near future,” Yin said.

The first vehicle exported will be a based on Chery's A1 compact sedan and sold under the Dodge brand, LaSorda said.

He and Yin said the companies would jointly develop future models, probably with Chrysler styling on a Chery platform.

China is the world's second-largest and fastest-growing vehicle market and has been a bright spot for U.S. automakers amid lackluster sales in their home market.

Most major automakers have set up factories in China but until now production has been aimed at satisfying booming Chinese demand.

LaSorda said that depending on the model and the market, production under the deal could reach several hundred thousand vehicles per year.

[justfacts2]

This company hasn't been around long enough to prove itself. After all of the recalls that China has had to put up with in the food industry and the factories that have been shut down in China, who's to say this company won't be cutting corners also? I lost my trust in anything made in China. Sorry but this one won't be buying anything exported from China anymore.

[wayne1231]

Dodge?

I remember my old Dodge Dart. Total junk. Anyone who would revive that brand in America does not have 2 brain cells to rub together.

What has Globalism done for you lately. Besides layoff and poluted landscapes.

[afmca]

Don't buy into this and definitely don't buy the product! This is Chrysler telling the world that managerial ineptitude has reached its zenith and they are looking for slave/prisoner labor to bail them out. GM, Ford, and Chrysler have not been doomed by labor contracts or market forces. They have fallen because, for so long, their high paid, no account executives believed in building bad cars; while charging high prices. The Japanese, etc. started by building bad cars for low prices, but evolved to good/excellent cars for reasonable prices. American manufacturers have continued the poor quality - high price mantra. They need to consolidate the brands, know their customers, concentrate on quality vs cost and quit looking for cheap labor and cheaper quality to bail them out. All on the 4th of July.

[brianbwb-2009]

Ross Perot may have been a couple cards short of a deck, but his "giant sucking sound" was right oin the mark.

Down with globalism. until there is a uniform fair wage for the whole world...

[brianbwb-2009]

to afmca,

Not to be too picky, but I think you mean the opposite of "zenith" (highest point), which is "nadir" (lowest point).

[afmca]

To brianbwb

I would say ineptitude - zenith - it has reached it's highest point of incompetence

On the other hand executive competence -nadir - it's lowest point of intelligence.

I agree with your comment on giant sucking sound - luckily the Japanese and Europeans are still building their high quality, reasonably priced cars in the USA.

[ryindy]

Glad the AP is giving us some insight to this treasonist deal.

DODGE, huh? Well there's another manufacturer for me to add to my list of never buy again.

The Dodge brothers should have stuck to what they knew how to do best a long time ago.

[ianlou]

Where will the Chinese get the anti-freeze for their new cars? Will they have any left over after filling our food with it?

[rushlimpdrug]

Bottom line is that America needs politicians that care about Americans living in America.
Today's politicians are totally blinded by dollar$$$ rolling in to them from corporations.
That is the sad truth.
Sadly, these traitors are republicans and democrats.

[bareemperor]

Oh, great! China will now build an even shiitier product than they do now...
With Chrysler's help they will build cars that self-destruct in the fast lane, wreaking rolling damage to our Toyotas and Nissans...
And they will put more Americans out of work in the process.
THank you, Mr. Bu$h...

[ianlou]

Oh, great! China will now build an even shiitier product than they do now...
With Chrysler's help they will build cars that self-destruct in the fast lane, wreaking rolling damage to our Toyotas and Nissans...
And they will put more Americans out of work in the process.
THank you, Mr. Bu$h...
Posted by BareEmperor at 12:36 PM : Jul 05, 2007

BareEmperor,
If you are driving a Toyota or Nissan, you have put Americans out of work.

[sjisl]

If we keep buying this *** they will find more ways to get it to us. I am no Bush fan, but how can you blame this on Bush? It is consumer driven. The domestics cannot produce small cars in this country to make money. If the consumers in this country did not want $4 T-shirts from Wal-Mart, we would not want these products from China. The problem runs much deeper, not at W's feet. Blame our joke of a Cogress as well. Blame health care costs, and union wages for this decision by Chrysler. We need to fix these problems fast.

[worried99]

Crysler has hit rock bottom with this move. If they can't sell their product, how can they expect to sell a SUPER-LOW quality car from China? Everyone knows Chinese products are horrible quality.