Chrysler Group President and CEO Tom LaSorda confirmed Thursday that his company had
reached an agreement in principle with China's Chery Co to distribute Chery-
made small vehicles in the global markets.
"Being able to partner with
Chery represents a long-term solution to the challenges of how to profitably
compete in the small vehicle segment," said LaSorda.
"This supply
partnership is part of a new business model that is allowing us to introduce
all-new products more quickly, with less capital spending. This announcement
reflects the realities of a global industry and DaimlerChrysler's need to remain
competitive in all segments," he added.
Chrysler Group officials said
the Chery-made new vehicles, which will be sold under Chrysler Group brands,
will attract new customers in two segments in which the Company does not
currently compete: very young buyers and entry-level price-point buyers.
These small, low-price segment vehicles are especially important in more
price- and fuel-economy sensitive markets, including Canadian, Mexican and most
European markets.
"We already have a well-established relationship with
Chery Automobile." added LaSorda. "Chery is the largest third-party customer of
the Chrysler Groupz/BMW Group Tritec Engine joint venture in Brazil."
Chery has already adopted some of the most state-of-the art manufacturing
processes. The level of technology adopted in their plant rivals that of many
western automakers.
Chery is well on its way to becoming a world-class
automaker, noted LaSorda, and meeting its goal to be the No. 1 Chinese automaker
by 2010.
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