Daimler Chrysler has signed a preliminary agreement with China’s Chery Automobile to build a small car for the Chrysler Group, according to Automotive News. The two companies have long been rumored to be in talks about a compact car collaboration.
While Chrysler spokesman Jason Vines wouldn’t confirm the identity of the new car, it is widely believed to be a b-segment vehicle based on the Dodge Hornet concept (pictured). Chrysler was originally rumored to be talking to Volkswagen about sourcing a platform for the project, but in July the focus shifted to Chery.
The deal still requires approval from DaimlerChrysler’s supervisory board, which meets in January, as well as the Chinese government.
