[AG3]

Originally Posted by ohmywrd8

So this is not coming to the US?

Chrysler said Chery cars are not ready for the US, and they have plans for a compact Chrysler for the world market to be manufactured by Nissan Japan.

Chrysler-Chery cars not ready for U.S., exec says
Posted April 21 2008 11:11 AM by Nate Martinez

Executives at Chrysler and Chery Automobile Co. stated at this week's 2008 Beijing Auto Show that potential vehicles slated to be introduced into the U.S. and European markets face a number of minor "technical challenges," before they can be considered for export.

"Neither Chrysler nor Chery is comfortable that those products as they exist today meet the requirements of Chrysler, and we're working together to make changes that we're both happy with," according to Phil Murtaugh, CEO of Chrysler Asia, according to an Associated Press report.

Not only do the cars have to meet the requirements of the American automaker, but they also must adhere to safety and quality regulations imposed by individual global markets.

Chery is one of several Chinese automakers being considered by Chrysler for a joint venture to build vehicles for North American consumers. Chrysler and Chery signed a strategic cooperation agreement last year to produce low-cost Chrysler branded cars for the world's emerging markets.

Chery Chairman Yin Tongyao is hesitant as well to dive into the European and American arenas head first, stating that Chery "should explore those markets in a gradual manner and do it step-by-step. We should not aim too high."

With many technical changes yet to be addressed, the Chery's stated goal for a 2009 U.S. debut will likely pass into 2010 at the earliest.

Source: AP

Nissan and Chrysler Sign OEM Agreements

Today news comes from both Chrysler and Nissan that they have signed two new OEM (Original Equipment Manufacture) deals. Back in January Nissan and Chrysler already announced that the Japanese auto maker would provide Chrysler with a derivative of its Nissan Versa sedan for the South American market.

Chrysler will build a full-size pick-up truck for Nissan with a Nissan unique design at their Saltillo Assembly Plant in Mexico. The new pick-up will complement Nissan's Frontier mid-size pick-up truck, which Nissan also supplies to Suzuki as the Equator. It stands to reason that the Dodge Ram will supply the underlying technology. Sales of the new Nissan pick-up will start in 2011.

Nissan on the other hand will produce a small car for Chrysler in Japan for the world market. The new small car will be based on 'a unique Chrysler concept and design', should be on sale by 2010 and will be built in Nissan's Oppama Plant in Japan. Which Chrysler concept will be used is unclear but there are three distinct possibilities, the recently released Chrysler EcoVoyager, the 2005 Chrysler Akino or 2006 Dodge Hornet.

Initial reports hinted at the fact that Chinese car maker Chery would build Chrysler's global small car, with Chery president Yin Tongyue and Chrysler's CEO Tom LaSorda even shaking hands on it. Whether this deal is still ongoing seems unlikely now that Nissan has stepped into the picture.

“Forging the right tactical partnerships is critical to the long-term success of Chrysler,” said Tom LaSorda, Chrysler LLC President and Vice Chairman after the signing ceremony. The global B segment counted for 19% (10 million units) of all global car sales in 2007, a very significant chunk of the pie which Chrysler is missing out on. In North America the segment is expected to grow by 32% (from 0.6 million units sold in 2007) while the industry is expected to shrink by 9% in 2008.

Carlos Tavares, Executive Vice President, Nissan Motor Company said, “This latest agreement builds on Nissan’s proven track record to deliver win-win product exchanges with multiple manufacturers around the world.”

Source: Chrysler and Nissan