China: Chery stops development work on Chrysler Group small car
Monday, May 21, 2007, AutomotiveWorld.com
Chery has stopped development work on a small car project it had undertaken for a Chrysler Group brand, according to The Associated Press, which quotes a statement given to German newspaper, Handelsblatt.
According to the financial daily, Zhang Li, the general manager of Chery, says his company has halted the project and wants to renegotiate the agreement it has with DaimlerChrysler to build the car.
Zhang says the recent Chrysler Group sale to Cerberus came as a "total surprise" to his company.
"We continue to be in talks with Chrysler, but we have not had any contact with the new owners yet," Handelsblatt quotes Zhang as saying.
Mary Gauthier, a spokeswoman for DaimlerChrysler, is reported by The Associated Press as saying that global growth remains an important aspect of Chrysler Group's recovery plan, adding that the sale to Cerberus had not changed that goal.
Published on Monday, May 21, 2007
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