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Chrysler ends talks with Chery

by Bill Cawthon on

According to the Wall Street Journal, Chrysler won’t be getting a small car from Chinese manufacturer Chery Automotive Co. Due to the stumbling global economy the Detroit automaker says it has ended talks of cooperation between the two companies.

The news came in a statement issued to the WSJ on Monday.

In the statement, Chrysler said, “Both companies have since gone thought major internal changes and evolution, resulting in different business directions and priorities versus a year ago. Many of the original premises the two companies had when entering into the agreement no longer apply.”

A Chrysler spokesman said that ending the relationship with Chery would not impact any of the company’s partnerships with other companies.

Neither Chrysler nor Chery would discuss the details of their discussions which began in the summer of 2007. Chrysler was looking for a small car it could sell in the United States and China, giving it a presence in the small car segment and a larger footprint in the international market.

Bill Cawthon grew up in the auto industry in the 1950s. His Dad worked for Chrysler and Bill spent a number of Saturdays down on the plant floor at Dodge Main in Hamtramck. Bill is also the U.S. market correspondent for, a British auto industry publication, and a member of the Texas Auto Writers Association, which has named the Jeep Grand Cherokee the “SUV of Texas” several times and named the Ram 1500 as the “Truck of Texas” two years running.

Bill has owned five Plymouths (including the only 1962 “Texan”), one Dodge and one Chrysler and is still trying to figure out how to justify a Wrangler. He also has owned at least one of every 1:87 scale model of a Chrysler product. You can reach him directly at (206) 888-7324 or by using the form.

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