China: Chrysler Group and Chery finalise cooperation agreement
Wednesday, July 04, 2007, AutomotiveWorld.com
Chrysler Group and Chery Automobile have finalised a cooperative agreement to develop, manufacture and distribute Chery small and mid-sized cars.
Tom LaSorda, the president and chief executive officer of Chrysler Group and Yin Tongyue, the chairman and president of Chery, signed the agreement. The US-based OEM will distribute Chery's small cars in North America, Europe and other major automotive markets, under the Chrysler brand.
The two OEMs signed a letter of intent in January; an agreement that was subject to approval by Chinese authorities. That agreement has now been approved by authorities from the State Development and Reform Commission.
"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," LaSorda states.
Under the arrangement, Chrysler Group and Chery will select several of the latter's models, and will make branding and regulatory changes, thereby facilitating their entry into other markets. Additionally, the two plan to develop new vehicles based on Chery's small-car platforms.
Published on Wednesday, July 04, 2007
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