To be in the market, Detroit-based automaker Chrysler Group has signed a document with China’s biggest automaker, Chery, to build cheapest and fuel efficient car for US market.
Chrysler will begin selling Chery Automobile’s A1 in the first quarter of 2008. American customers will get a 1.3-liter A1 for about half the price of Chrysler’s cheapest model. Chrysler’s least expensive U.S. model is the $13,850 Dodge Caliber.
The vehicles made by Chrysler and Chery could become the first cars produced in China to be sold in the United States. The first exported vehicle will be sold under the Dodge brand. The companies would jointly develop future models, probably with Chrysler styling on a Chery platform.
Chrysler Chairman and CEO Tom LaSorda said:
As part of the Chrysler Group’s global transformation, we are finding new ways to bring vehicles to market faster, more efficiently and with less cost
It’s apparent that American noted automakers have lost their market amidst the galloping oil prices and fuel efficient Asian compact models are taking their place easily. To back in the market, American based automakers have decided to cut down their expenses by reducing workforce and locking their loss making units.
The deal is also a part of money-losing Chrysler’s strategy of trying to cut costs and respond more quickly to market demands through production deals with local partners around the world.
Via: MSNBC
Comments
Do you really think The Chinese car would be effective in US.
Chinese car makers have not even entered India ...buddy
And the cost of used cars in good condition is anyway very cheap in US......
good luck to Chery’s biggest automakers..h0pefully, since Chrysler’s strategy is trying to cut its costs to meet market’s demand i guessed it will probably be supported by consumers...is that will be out in canada? h0pefully it should come since oil filter canada had reliable oil filters and when it comes to producer-consumer relations, they are in great service.