Chrysler, Chery Drop Small Car Talks

9 December 2008

Detroit News. Chrysler and Chery Automobile have dropped their talks on the Chinese automaker building a small Dodge car for export. (Earlier post.)

“Chrysler LLC has confirmed that Chery Automobile Co. and Chrysler have mutually agreed that it is in each company’s best interest to conclude their discussions on a strategic cooperation agreement that have been active since July 2007,” said Mike Manley, executive vice president of Chrysler's international sales and marketing. “The two companies will shift resources to independently pursue their business objectives,” Manley said in a statement, noting both gained “better insights into the opportunities and challenges of pursuing growth” globally.

There have been numerous reports that work was on hold as both companies faced money problems and deteriorating domestic markets. At this year’s Beijing auto show, Chrysler officials said the small car being built would not meet US standards.