Chrysler outlined a plan several months ago to sell a Chinese-made Chery small car in the U.S., but it appears as though those plans have fallen by the wayside. Chrysler’s plan to sell a Chery-made car in Mexico also appears to be off the table.
Sources familiar with the situation say the plan is on hold indefinitely, with the strong possibility that nothing will come of the earlier agreement.
“I wouldn’t place much hope on it,” a former Chery executive familiar with the Chrysler deal told Automotive News. “Both companies have their own problems to deal with, and both have run out of money.”
In addition to money problems, it’s been reported that Chery’s small car would have never made it here in the U.S. Chrysler’s Tom LaSorda openly admitted that Chery’s cars are “three years or more” away from being able to meet stringent U.S. safety and emissions regulations, and the build quality of Chery’s cars are far below that of what’s acceptable in the United States.
Despite the fallout, Chrysler still needs a competitive market for the U.S., so look for a Dodge-badged Nissan Versa to hit the streets early next decade.
11/17, 7:30 PM
posted by:
johnnycanuck
That’s what happens when you leave things wide open, your Chery gets popped.
11/17, 7:36 PM
posted by:
howsmydriving
Hornet, we hardly knew ye.
11/17, 7:44 PM
posted by:
GT40
The chinese advance has been halted, thank God.
11/17, 8:07 PM
posted by:
deutschetouring1337
MotorTrend:
Nearly a year and a half ago, we brought you word that Chrysler had signed a deal with Chinese automaker Chery to bring small, affordable cars to the North American market fast. Unfortunately, the deal never really delivered what it had promised, and today, sources have said that it is all but dead for the time being.
“This is the start of a long relationship between Chrysler and Chery,” said then-Chrysler CEO Tom LaSorda during the signing ceremony in Beijing at the Diaoyutai State Guesthouse last year.
Unfortunately, that hasn’t been the case. An unnamed source, who is reportedly an ex-Chery executive, told Automotive News “I wouldn’t place much hope on it. Both companies have their own problems to deal with, and both have run out of money.”
The source went on to say that Chery is well-aware of the fact that its cars can’t meet U.S. safety or emissions regulations. It isn’t news to LaSorda either, who is now co-president of Chrysler.
“We need small cars,” said LaSorda during an interview with Automotive News back in May. “Chery’s cars are still not ready for that exposure into these markets.”
LaSorda went on to say that it would likely be at least three years until Chery’s cars were ready for the U.S., though the companies never established a timetable for bringing the cars to America. In the mean time, the companies had planned to import the cars to Mexico first, which has less stringent regulations. That was supposed to happen in the near future, but that plan appears to be on hold now as well.
11/17, 9:17 PM
posted by:
Rafa LL
johnny, as usual, I cracked laughing!
11/18, 2:16 AM
posted by:
zoomzoomer
The way things are going, I expect to see the Brazilian/Venezuelan Dodge Trazo in the US very soon.
http://www.zercustoms.com/photos/Dodge-Trazo-C1.8.html
11/18, 11:55 AM
posted by:
TomF
Chrysler won’t be around long enough to resurrect this deal.
11/18, 2:56 PM
posted by:
JoshyLofty
that sucks i loved the hornet