Chinese vehicles to be marketed under Chrysler brand names
01-05-07, 12:08 PM
#1
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Chinese vehicles to be marketed under Chrysler brand names
January 5, 2007
Auburn Hills, Michigan - Chrysler Group President and CEO Tom LaSorda has announced that the company has reached an agreement in principle with Chinese automaker Chery Sales Co. to distribute Chery-made small vehicles in North America, Europe and possibly other global markets. The agreement is subject to the approval of the DaimlerChrysler Supervisory Board and Chinese authorities.
"Being able to partner with Chery represents a long-term solution to the challenges of how to profitably compete in the small vehicle segment," LaSorda says. "This supply partnership is part of a new business model that is allowing us to introduce all-new products more quickly, with less capital spending. This announcement reflects the realities of a global industry and DaimlerChrysler's need to remain competitive in all segments."
Chrysler group officials say the new vehicles, which will be sold under Chrysler Group brands, will attract very young buyers and entry-level price-point buyers, two segments in which the company doesn't currently compete. The company says these small, low-price segment vehicles are especially important in more price- and fuel-economy sensitive markets, including Canada, Mexico and most European markets. LaSorda says that although Chrysler Group has historically been most reliant on trucks, minivans and SUVs, it is now moving quickly toward smaller vehicles.
"We already have a well-established relationship with Chery Automobile," LaSorda says. "Chery is the largest third-party customer of the Chrysler Group/BMW Group Tritec Engine joint venture in Brazil." Since 2004, Tritec 1.6-litre engines have been exported for use in the Chery A15 and Fengyun.
Chrysler Group designers will work with Chery on the new small vehicles, which are based on yet-to-be-announced Chery platforms, to create unique Chrysler Group styling cues. DaimlerChrysler engineers will also work closely with Chery to ensure these new vehicles meet all applicable safety and emissions standards in market where they are sold. Founded in 1997, Chery is China's largest exporter of domestically made automobiles.
Auburn Hills, Michigan - Chrysler Group President and CEO Tom LaSorda has announced that the company has reached an agreement in principle with Chinese automaker Chery Sales Co. to distribute Chery-made small vehicles in North America, Europe and possibly other global markets. The agreement is subject to the approval of the DaimlerChrysler Supervisory Board and Chinese authorities.
"Being able to partner with Chery represents a long-term solution to the challenges of how to profitably compete in the small vehicle segment," LaSorda says. "This supply partnership is part of a new business model that is allowing us to introduce all-new products more quickly, with less capital spending. This announcement reflects the realities of a global industry and DaimlerChrysler's need to remain competitive in all segments."
Chrysler group officials say the new vehicles, which will be sold under Chrysler Group brands, will attract very young buyers and entry-level price-point buyers, two segments in which the company doesn't currently compete. The company says these small, low-price segment vehicles are especially important in more price- and fuel-economy sensitive markets, including Canada, Mexico and most European markets. LaSorda says that although Chrysler Group has historically been most reliant on trucks, minivans and SUVs, it is now moving quickly toward smaller vehicles.
"We already have a well-established relationship with Chery Automobile," LaSorda says. "Chery is the largest third-party customer of the Chrysler Group/BMW Group Tritec Engine joint venture in Brazil." Since 2004, Tritec 1.6-litre engines have been exported for use in the Chery A15 and Fengyun.
Chrysler Group designers will work with Chery on the new small vehicles, which are based on yet-to-be-announced Chery platforms, to create unique Chrysler Group styling cues. DaimlerChrysler engineers will also work closely with Chery to ensure these new vehicles meet all applicable safety and emissions standards in market where they are sold. Founded in 1997, Chery is China's largest exporter of domestically made automobiles.
01-05-07, 12:13 PM
#2
Super Moderator
In Mexico, we have Hyundais branded under Dodge nameplates. However, this is going to be interesting as far as a pricing perspective. People down here will swear that if the old VW Beetle were still being produced they would consider a new one instead of a used vehicle given high prices of vehicles down here. In Mexico, I can see this Chinese vehicles possibly having some success if they catch on and parts are readily available.
01-05-07, 02:24 PM
#4
Lexus Fanatic
What's so interesting about it?
They're two peas in a pod.............probably just about the same quality level.
Poor quality or not, though...I am eagerly awaiting a chance to see and review the new Chinese products. They are going to be some of the most interesting new vehicles here since the Koreans first came over more than 20 years ago.
They're two peas in a pod.............probably just about the same quality level.
Poor quality or not, though...I am eagerly awaiting a chance to see and review the new Chinese products. They are going to be some of the most interesting new vehicles here since the Koreans first came over more than 20 years ago.
Y'all keep cutting costs now, ..... ya hear!
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01-05-07, 07:14 PM
#8
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This doesn't sound like a good idea. Chrysler will be blamed for all the quality issues that currently go along with a Chinese car. Chrysler's quality isn't fantastic but it isn't horrible either. Chrysler doesn't need this headache.
01-06-07, 05:13 AM
#9
Lexus Fanatic
Depends on how you define fantastic and horrible, but by modern standards today, Chrysler-designed and Chrysler-built cars are some of he worst out there, quality-wise. Go look at a Dodge Caliber or Jeep Compass and you see exactly what I mean.
And some Mercedes products are even worse. M-B, as an entire vehicle line, forms just about last place in Consumer Reports' reliability rankings.
01-06-07, 09:46 AM
#11
Lexus Test Driver
If I remember right, it was Cherry (the specific model was the Nissan Pathfinder look-a-like) that was tested by a german independent safety firm a year or two ago and they concluded it was the MOST UNSAFE vehicle they'd tested in the last 30 years and that you were almost certain to die in a head-on collision at 45mph. I'd like to see official crash-tests when this thing makes its way over here.
01-08-07, 11:15 PM
#12
If I remember right, it was Cherry (the specific model was the Nissan Pathfinder look-a-like) that was tested by a german independent safety firm a year or two ago and they concluded it was the MOST UNSAFE vehicle they'd tested in the last 30 years and that you were almost certain to die in a head-on collision at 45mph. I'd like to see official crash-tests when this thing makes its way over here.
Hmm.. which is worse.. MB + Chrysler = DCX? or Chrylser + Chery? lol
02-27-07, 01:45 PM
#13
Super Moderator
Thread Starter
Updated: Chrysler given the green light on Chery deal
Posted on Tuesday 27 February 2007
DaimlerChrysler’s supervisory board today approved the partnership between Chrysler and Chery to develop a new small vehicle to be manufactured in China and exported to global markets. However, the deal will only be finalized with the agreement of the Chinese government, which is expected to make its decision by the end of March.
Back in December, Chrysler and Chery formed a joint-venture to assemble a new small car in China for worldwide export, but until now the only progress made was the signing of a letter of intent. The vehicle will be aimed primarily at North America and Western Europe.
Chrysler’s original plan was to export a vehicle based on one of Chery’s existing designs, but recent reports suggest that it’ll likely build a production version of its Dodge Hornet concept pictured above.
DaimlerChrysler’s supervisory board today approved the partnership between Chrysler and Chery to develop a new small vehicle to be manufactured in China and exported to global markets. However, the deal will only be finalized with the agreement of the Chinese government, which is expected to make its decision by the end of March.
Back in December, Chrysler and Chery formed a joint-venture to assemble a new small car in China for worldwide export, but until now the only progress made was the signing of a letter of intent. The vehicle will be aimed primarily at North America and Western Europe.
Chrysler’s original plan was to export a vehicle based on one of Chery’s existing designs, but recent reports suggest that it’ll likely build a production version of its Dodge Hornet concept pictured above.
02-27-07, 06:19 PM
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Them chinese are sneaky, but they ain't too smart...yet. Tag teaming with the worst of the american brand is not a good start. Guess they'll have to learn the hard way. Or just put their anger towards the Japanese aside and make friends with Toyota or Honda.
