Chrysler signed an agreement yesterday with China’s Chery Automobile to jointly develop, manufacture and sell Chery-built cars under Chrysler’s three brands, Chrysler, Dodge and Jeep. Chery expects to sell cars in Latin America and Eastern Europe by the end of next year, with U.S. sales coming a year later in 2009.
Automotive News reports that the first car will be based on Chery’s A-1, a brand new 1.3 liter minicar. It’s expected that the car will be badged a Dodge. That car won’t come to the U.S., but Chery-built Chrysler/Dodge/Jeeps designed and engineered by both Chrysler and Chery will arrive stateside by mid-2009, according to Chrysler CEO Tom LaSorda.
Chery agreed to allocate 15 percent of its production capacity to Chrysler. Chery sold just over 300,000 cars in 2006, but is on track to produce 800,000 for 2008.



07/05, 7:13 AM
posted by:
sunshine1810
Is this the future of Chrysler?
07/05, 7:50 AM
posted by:
snork
Didn’t Chrysler see that german crash test video of a chinese car, LOL…pancaked.
07/05, 7:54 AM
posted by:
snork
Piablo…yeah, it took Hyundai about 10 yrs to really get a foothold here and I don’t think American’s in general had a huge preconceived notion about “cheap” Korean products (ie: LG/Samsung are top electronics brands…granted I saw a survey that most people think they are Japanese brands, LOL). China is too well known for cheap goods, I don’t think they will sell at all in the US if a Chinese car is brought here.
07/05, 7:56 AM
posted by:
snork
I think the time is messed up at LLN…my posts are showing time stamps about 2 hrs ahead of the actual time?
07/05, 8:21 AM
posted by:
Piablo
Chrysler’s answer to having the worst quality in the industry is to let the Chinese engineer and build them. Maybe it will work, don’t know. But someone has to buy one to find out and I don’t think Americans are chomping at the bit to buy a Chinese car.
07/05, 9:06 AM
posted by:
Z06ified
Dumb idea virtually guaranteed to tarnish Chrysler’s reputation of quality even further. The Chinese can’t even make toothpaste without defects that can kill people. A car is a complicated piece of machinery that is way over their heads. It can be done, but Chrysler needs to manage the quality control there with extreme diligence. Including the design and engineering. The problem with Chinese manufacturing is they will cut corners everywhere they can unless constantly supervised to do it the correct way.
There are plenty of stupid people out there looking for cheap new cars, so it will sell. Scion proved that, as did Hyundai and Kia. At least Scion had Toyota’s engineering and quality control. Chery’s have similar engineering and quality control to the Yugo. Big difference.
07/05, 9:07 AM
posted by:
Elvio
Chrysler will become the Car’s Wal-Mart.
07/05, 9:08 AM
posted by:
Wickedated
Won’t make it pass NHTSA’s crash standards.
07/05, 9:46 AM
posted by:
ml350pc
I would not buy furniture made in China, let alone an automobile!
07/05, 11:56 AM
posted by:
LamborghiniZ
Bet it won’t actually happen. Bet it gets put off even farther.
07/05, 12:00 PM
posted by:
jackjimturkey
ml350:
I think they’ll have to be dirt cheap for just that reason. if they prove themselves, people will eventually buy the cars.
Wonder when the first “chink” comment will come in
07/05, 12:48 PM
posted by:
monkeyrun
“The Chinese can’t even make toothpaste without defects that can kill people. ”
Apparently they also make the iPod, iPhone, MacBook, Mac Pro etc…
Things manufactured in China is only as good as the company that commissioned them to.
It’s simply not fair to bring up “Made in China” only when something malfunctions.
07/05, 1:02 PM
posted by:
Piablo
Jackjimturkey – I think people’s willingness to buy chinese cars will go beyond quality. There are differences that exist that go well beyond racial slurs. France is known for very high quality wines, yet when they chose to badmouth the US, their exports virtually dwindled to nothing. The Chinese are no exception. I expect to see a major culture clash in the near future, especially if they keep up their military shenanigans. Personally, I’m not so sure I want to help fund a country that could potentially harm the US fiancially.
07/05, 1:14 PM
posted by:
jackjimturkey
Piablo:
You’re right, there is a lot of tension between the U.S. and china.
That’s why it’ll be a long climb.
They may give up, as daihatsu did, but if they make good-enough cars, and hang in there, people will buy them.
Anyone who says china can’t make complicated stuff is underestimating them. How many engineers graduated in china last year? What about the U.S.?
07/05, 2:23 PM
posted by:
AMGoff
We can’t compare the cars made in China that are meant for sale in China with ones that are made for China meant for sale in the US. These cars will have to pass all of the same safety regulations that every other car has to pass in order to be sold here. Chrysler is at the point where they need to pull a Hyundai/Kia. Sell a dirt cheap car and give it a good warranty. Will the material quality be good? Of course not, but I don’t expect many people who are in the market for a $10K car will be expecting high quality materials. If they run well and have a good warranty they will sell like crazy.
07/05, 3:58 PM
posted by:
kosai03
How many engineers graduated in china last year that were ACTUALLY engineers and not just reported as engineers? Granted, China has a huge population so that could boost the number of grads, but Asian countries still have been inflating their graduation rates lately to make themselves look better.
07/05, 4:11 PM
posted by:
TOZO
China = recipe for disaster at Chrysler
07/05, 6:00 PM
posted by:
1c3d0g
TOZO: sadly, that appears to be true in this case. Really disgusted with the direction Chrysler is going in.
07/05, 9:35 PM
posted by:
Veda
“France is known for very high quality wines, yet when they chose to badmouth the US, their exports virtually dwindled to nothing. The Chinese are no exception.”
There’s a major difference between buying an optional luxury item and buying an appliance with the sole reason of low cost. In the case of the latter, regardless of the situation there will always be consumers, anytime, anywhere. China can do almost whatever they want and US will still buy their products. Even if US stopped doing that, the rest of the world will.