Chrysler Group Signs Letter of Intent with Chery
04 Janvier 2007 - 4:28PM
PR Newswire (US)
- Chrysler Group to distribute Chery-made small vehicles under
Chrysler brands - Small vehicles to launch in NAFTA region,
European region AUBURN HILLS, Mich., Jan. 4 /PRNewswire-FirstCall/
-- Chrysler Group President and CEO Tom LaSorda today confirmed
that his company had reached an agreement in principle with Chery
Sales Co. to distribute Chery-made small vehicles in the NAFTA
region, European region and possibly other global markets. The
agreement is subject to the approval of the DaimlerChrysler
Supervisory Board and Chinese authorities. "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." Chrysler Group officials say the new vehicles, which
will be sold under Chrysler Group brands, will attract new
customers in two segments in which the Company doesn't 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. The introduction of these new
small vehicles represents an important addition to the Chrysler
Group's already diverse product portfolio. LaSorda said that
although historically Chrysler Group has been the most reliant upon
trucks, minivans and sport-utility vehicles, the Company is now
moving quickly toward smaller vehicles. LaSorda added that small
cars are playing a major role in his Company's international
growth. The Dodge Caliber has already become the Chrysler Group's
No. 2-selling vehicle (behind Jeep Grand Cherokee) outside North
America. "We already have a well-established relationship with
Chery Automobile," added LaSorda. "Chery is the largest third-party
customer of the Chrysler Group / BMW Group Tritec Engine joint
venture in Brazil." Since 2004, Tritec 1.6-liter engines have been
exported for use in the Chery A15 and Chery Fengyun. Chrysler Group
designers will work with Chery on the new small vehicles, which are
based on yet-to-be-announced Chery platforms, to create unique
Chrysler Group styling cues. DaimlerChrysler engineers will also
work closely with Chery to ensure these new vehicles meet all
applicable safety and emission standards in markets where they're
sold. 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. Founded in
1997, Chery is China's largest exporter of domestically made
vehicles. Pricing and additional product details will be revealed
at a future date. DaimlerChrysler is expanding both sales and
production in China. In 2006, DaimlerChrysler's joint venture
BeijingBenz-DaimlerChrysler (BBDC) formally opened its new facility
in Beijing. BBDC has been producing Mercedes-Benz E- Class sedans
since December 2005, and began producing Chrysler 300C sedans in
November 2006. BBDC also produces the Mitsubishi Outlander at its
new facility. DaimlerChrysler is also planning to produce
Mercedes-Benz transporters in Fuzhou with partners Fujian Motor
Group (FJMG) and China Motor Corp. (CMC), in a new joint venture
called DaimlerChrysler Vans China. The Chrysler Group is licensing
production of its minivan to Southeast Motors, a separate joint
venture of the same partners, also in Fuzhou. And the Company
continues moving forward with its plans to realize production of
heavy-duty and medium-duty trucks in China. The Chrysler Group is
also licensing minivan production in Taiwan with CMC. The Company
imports passenger cars and commercial vehicles to China under the
Mercedes-Benz, Chrysler and Jeep brands. DATASOURCE: Chrysler Group
CONTACT: Mike Aberlich, +1-248-512-2704, or , or David Elshoff,
+1-248-512-2690, or , both of Chrysler Group Web site:
http://www.media.daimlerchrysler.com/
http://www.daimlerchrysler.com/
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