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Chrysler sale puts brakes on Chery deal

05/22/2007, 1:38 PM

By ndhapple

Due to its sale, Chrysler may have to renegotiate its agreement with Chery, The Detroit News reported Tuesday. Chrysler management is confident they can keep the deal together.


According to The Detroit News, framework negotiations between the two automakers were complete, but negotiations over specific projects such as a Dodge subcompact car are only in the earliest stages.

The Chery arrangement is critical to Chrysler analysts say because it offers Chrysler a low cost manufacturing partner critical to competing profitably in the compact and subcompact markets. Currently Chrysler doesn’t have an entry in the subcompact market, and fields only the Caliber and PTCruiser in the compact market segment.

Magazine reviews seem to indicate that neither of those two entries is seen as competitive in the compact car market.

Another possible foreign alliance could be between Mitsubishi and Chrysler, analysts speculated in the piece. Chrysler and Mitsubishi have worked together in the past and are currently partners in the development of the Phoenix V6.

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05/22, 1:49 PM

posted by:

GcoupèJoe

My god, over the past month,it seems like Chrysler has undergone more drama and changes than most companies ever will. Chrysler just needs to settle with what they are offered and be content because it’s obvious that no one really takes them seriously. I mean how else does a 50 billion dollar proposal turn into a mere 7 mill. dollar one?

05/22, 1:57 PM

posted by:

homeboy234

ha ha stuff chrysler they’ll get ruined for good pretty soon and when they do i’ll be jumping for joy. ha ha LMFAO

05/22, 2:07 PM

posted by:

GcoupèJoe

homeboy, You won’t be the only one jumping for joy….

05/22, 2:31 PM

posted by:

deantj

No big surprise there. You can’t pit the PT Cruiser and Caliber against cars like the Mazda3, Golf, and brethren and be taken seriously.

They can keep the Caliber but it needs a normal, sporty reskin minus all the stupid angles and notchy metalwork. And maybe sell a small sporty coupe based on the Caliber to compete with the GM budget twins (Cobalt/Pursuit).

(EDITED FOR CONTENT)

05/22, 2:35 PM

posted by:

homeboy234

(EDITED FOR CONTENT, LANGUAGE)

05/22, 3:06 PM

posted by:

deantj

^^^ LOL loser, no one read your stupid comment- deleted within a minute of posting.

05/22, 4:10 PM

posted by:

PrimeGTP

With all the design theft pervading China’s auto industry, they should be barred from entering the US market anyway.

05/22, 4:55 PM

posted by:

Stuart

Why should they be barred exactly? They will probably get sued if they take their cars to different countries but they have the right to sell every where and anywhere as all other makers.

05/22, 5:10 PM

posted by:

drivingisfun

Listen, we all know what’s going to happen. Remember when the Japs wanted to sell cars and noone took them seriously? Remember when the Koreans did the same? If we don’t look over our shoulders soon enough (you know, by negotiating deals to contain the Chinese and take advantage of their manufacturing abilities) we’re going to be stuck with another foreign competitor. Let’s hope that the other major car companies follow suit. Toyota has the US by the balls and it only took them 30-40 years, anyone else can do it in less now.

05/22, 9:55 PM

posted by:

PrimeGTP

You mean like US automakers have the right to sell in Japan? What a laugh.

05/23, 8:27 AM

posted by:

Jeff in Canada

The US automakers do sell in Japan.

Regarding the story, I hope this doesn’t put much of a hold on the Hornet concept. I think there is a real market for a product like that. A domestic Mini Cooper-like product. At least one of the big 2.5 would have a competative product in the Bclass subcompact segment.

05/23, 10:38 AM

posted by:

PrimeGTP

No they don’t, not the way everyone that that can strap an engine and 4 wheels together can here. Getting foreign models approved for sale in Japan is a long, expensive, bureaucratic process, all because of protectionist industry policies. And people wonder why they are able to sell more globally.

05/23, 11:57 PM

posted by:

Sharif

I think Chrysler should just choose either Mitsubishi or Chery quick because Chrysler is already going to be going under a lot of change so if they add more changes know they won’t really notice the negative effects of the deal as much. Plus the deal could help them survive for the next few years while they are restructuring.

05/24, 12:38 AM

posted by:

Stuart

Hey primeGTP, it would explain why the Japanese along with the germans are regarded as the best car makers. Maybe its because they actually do give a s**t about the enviroment and the people who drive their cars unlike americans who rather pay compensation for your death then actually pay for the repair beforehand cos it cheaper (e.g. ford explorer).

05/24, 10:33 AM

posted by:

PrimeGTP

Stuart…I can honestly say I have no idea what your talking about. Did your post have anything to do with mine?

05/24, 4:47 PM

posted by:

Stuart

PrimeGTP, you said = “No they don’t, not the way everyone that that can strap an engine and 4 wheels together can here. Getting foreign models approved for sale in Japan is a long, expensive, bureaucratic process, all because of protectionist industry policies. And people wonder why they are able to sell more globally.”

As you said the japanese only allow cars that are safe on their roads to be approved. Plus it would explain why the japanese are regarded to be one of the best alonside the germans. Their cars are made good enough to pass unlike the american cars.

05/24, 4:53 PM

posted by:

PrimeGTP

No, the Japanese only allow a certain quota of foreign cars into their market to protect their domestic companies. Safety has nothing to do with it.

05/24, 4:59 PM

posted by:

Rompn4x

Finally someomne is editing the low intelligence in here

05/25, 11:01 AM

posted by:

A4

CHERY SUCKS!

05/25, 1:25 PM

posted by:

Stuart

PrimeGTP – Its funny how ever maker in japan is there and even EURO designed and built fords are there.

05/25, 1:25 PM

posted by:

Stuart

******** I mean europe not japan**********

05/25, 5:01 PM

posted by:

Syrax

http://www.chevrolet.co.jp
they sell the trailblazer there…and ford sells the escape and the explorer (along with the fiesta mondeo and euro focus)

 
 
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