Chrysler Signs Deal to Make Small Car With Chery

After swirling rumors that Chrysler Group was looking for a partner to builda 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 theequivalent 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 beproduced 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.