Chrysler agrees to sell Chinese made cars in US

Beijing News.Net
Wednesday 28th February, 2007

Los Angeles, Feb 28 (Xinhua) German carmaker DaimlerChrysler has struck an agreement with China's Chery Motor to sell the Chinese built cars in the United States as a cheap way to enter the growing entry level market, the Los Angeles Times has reported Wednesday.

Company executives said Tuesday that they expected the Chinese government to approve of the agreement by the end of March, according to the report.

The pact calls for Chrysler, DaimlerChrysler's US arm, to work with the Chinese company to design and engineer subcompact cars, which would be built in China and exported to North America and Europe under Chrysler brand names.

The subcompacts would be the first Chinese vehicles sold in the US and probably open the door for other Chinese automakers, said the newspaper.

DaimlerChrysler said its plan to sell or spin off its ailing US arm, which it acquired in 1998, would not upset its agreement with Chery.

Chrysler Chief Executive Tom LaSorda earlier had said that cars from Chery could start arriving in 2009.

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