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.
