Chery to build Chrysler cars

Chery to build Chrysler cars

Chery motors the Chinese car company has confirmed that it will build small cars for the automotive giant DaimlerChrysler. A spokesman at Chery confirmed that details of the deal would be released in a month. Tom LaSorda, Chrysler's chief executive officer, had confirmed at Auto China 2006 show last month that there were talks with Chery on building small, B-class size cars.

The company also aims to triple their sales in China to 100,000 units in a time of 3-4 years. The Chery will also become the production base of the Dodge and the small fuel efficient car. This will provide Chrysler with low production cost cars. The China Development Bank issued on Thursday a 5.8-billion-yuan (742-million-dollar) loan to Chery as the government now addresses developing China's own brands as a national strategy, it said.

There might also be a joint venture of Fiat in China. For now it has signed a deal with the Italian automaker to sell more than 100,000 1.6 and 1.8 liter gasoline car engines per year. Looks like all or even most European companies are looking to the east to setup manufacturing plants for low production cost vehicles. Let’s hope they don’t compromise on the quality.