Chery to discuss small car proposal again with Chrysler

Chery to discuss small car proposal again with Chrysler

Chinese carmaker Chery has said that they are halting their joint project with DaimlerChrysler AG to develop small cars after the company sold 80.1% in Chrysler Chrysler division to Cerberus.

The two companies were working on launching Chrysler’s smaller cars in the Chinese market. Chery’s head of international business Zhang Li was quoted as saying to the media: ‘We are still in talks with Chrysler, but have not had contact to the new owners’,

Zhang also did not comment on the market rumors that they were considering acquiring Chrysler’s Dodge brand. Chrysler’s head Tom La Sorda was quoted as saying recently that they wanted to have closer ties with Chery.

Chrysler has been a troubled unit for the parent company DaimlerChrysler posting massive losses in the market. They are not alone as even Ford and GM are going through a rough phase in the market where consumers are increasingly favoring purchasing Japanese cars manufactured by Toyota and Honda.