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Chrysler Convinced Cheap Chinese Cars Can Carry Company
9th July, 2007 | ||||
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Chrysler Group President and CEO Tom LaSorda joined Chery Automobile Co. Chairman and President Yin Tongyue last week to finalise the already announced cooperative agreement between the two car makers. Chinese governmental authorities from the State Development and Reform Commission officially approved the agreement and marked the occasion by hosting a first-of-its-kind signing event. The ceremony was held at Beijing’s Diaoyutai State Guesthouse. Under the agreement, Chery, based in Wuhu, Anhui Province, China and Chrysler, based in Detroit, Michigan, USA will work together to develop, manufacture and distribute Chery made small and sub-compact cars in North America, Europe and other major automotive markets under the Chrysler Group brands. “This is a win-win for both of our companies and I am confident this will be a successful relationship,” said Yin. “Chrysler brands are very well known in the U.S. and Europe. We're prepared to work with Chrysler Group to expand their small-vehicle line-up with competitive products and accelerate both our companies' international competitiveness." Chrysler will identify several small-car models now being developed by Chery in China and work collaboratively to make any necessary branding and regulatory modifications prior to their entry into other markets. Both companies also will jointly develop new globally competitive products based on future Chery small-car platforms. Strategic growth in international markets – while defending market share in North America – is an important part of Chrysler Group’s Recovery and Transformation Plan. "This is the start of a very long relationship between Chrysler and Chery," said LaSorda. "Chery’s participation in this agreement and their focus on small and sub-compact cars will have a nearly immediate effect on Chrysler Group's offerings in the small-vehicle segments. This strategic partnership is part of a new business model that is allowing us to introduce all-new products more quickly, with less capital spending." Chrysler's relationship with China began 25 years ago when it formed Beijing Jeep Corporation, the first international automotive joint venture in the country. The DaimlerChrysler Supervisory Board approved the framework for the agreement with Chery earlier this year. It is unclear at this time if Chery made Chinese cars will come to Australia. However, with Chrysler struggling to make money in North America it seems probable that the company will do whatever it takes to sell more cars and make some money. Even reducing the image of company's name by trading in cheap Chinese cars is now on the radar. So the question is ..... who in Australia wants to be the first on their block with a cheap Chrysler-cloaked Chinese car? | |||||
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