Big Deal to Produce Little Car
Canadian Auto Press
After swirling rumours that Chrysler Group was looking for a partner to build a new small vehicle, the dust has settled and a mate was selected. Chrysler's head of PR, Jason Vines told Automotive News that Tom LaSorda, CEO of Chrysler Group signed a "letter of intent" to produce a global small car under the American wing of DaimlerChrysler with Chery, China?s most famous automaker.
In the grand scheme of things this communication is the equivalent to a first step. Before we start seeing "Made in China" tags on Chrysler group products, both sides must sign off for approval. DaimlerChrysler (as a whole) will have much to consider before putting their pen to the page, while, the Government of China will most likely have something to add before giving the project their good blessings. Reputation, cost, quality and other things will be hot topics. Vines was positive stating that once that hurdle was passed, that the auto-making part of the arrangement would begin quickly.
There hasn't been any word on what vehicles would be produced by the merger, but the general consensus is that it's a vehicle that will be vital to Chrysler Group's future success: a small subcompact, B-Segment vehicle. Currently Chrysler Group's smallest vehicle is the Caliber/Compass/Patriot triplets, which occupy the larger C-Segment category. What many consumers want are more fuel efficient and cost-friendly cars. The vehicle that's slated to be produced would be a production version of the Dodge Hornet concept, the tiny three-door hatchback that debuted at last year?s Geneva Motor Show. Vines said that the car could be sold as a Chrysler, Dodge or Jeep product.
Before Chery came into the picture, it was rumoured - and expected - that Volkswagen would have been Chrysler's production partner for the B-Segment car. Aside from needing a successor to its Polo subcompact hatchback, VW is also rumoured to be working with Chrysler to develop the next-generation Caravan/Town & Country minivan, not to mention that they are the official suppliers of diesel engines for the Caliber, Compass, Patriot and Sebring in global markets. However, issues of production and overall cost were speculated as the main reasons why the merger fell apart.
It seems that Chery is working its way up the ranks in producing automobiles and will be the first to have its vehicles sold in the United States, with or without the Chery nameplate. After all, Chery was supposed to make its big North American debut partnered up with Malcolm Bricklin's Visionary Vehicles, but as far as mates go, Chrysler is a much bigger and much more stable fish. Though the first Chery vehicles to enter the United States might not be badged as Cherys, it will give the Chinese automaker a gateway to this all-important market.
