Chrysler-Chery JV to end, talks on Chery buy outs
According to automotive website, auto.sohu.com, the Chrysler-Chery joint venture which was to see 5 of Chery’s cars rebranded as Dodge or Chrysler vehicles for developing markets has come to an end.
Chery has been awarded 10 billion RMB’s worth of loans from the China Export bank, the loan states the Chery will use the money over a period of three years to increase their automotive exports, and to buy in foreign technology. Cherys second in command, Mr. Jin Yi Po, remarked that previously the bank had loaned Chery 5 billion RMB in 2005 to increase domestic sales in China, both the bank and Chery believe that the loan cooperation was highly sucessful, hence the second loan to aid Chery on an international scale.
Mr. Jin Yi Po says that as the market conditions are far from ideal, Chery may actually delay the launch of certain vehicles.
In July 2007, Chery and Chrysler announced their joint venture, which would have seen the Chery A1, A2, A3, and an unknown Chery pick up truck would have been made for Chryslers OEM operations. It appears that both parties have come to the consensus that the JV would have created a conflict of interests.
A Chery insider told the Chinese press that Chery now wish to concentrate on their own independent development, and apparently joint Chrysler/Chery work on the future Dodge Breeze (Chery A1) had already ended. Chery is already working on exporting the A1 to the Americas, the Chery A1 has already been exported to more than 60 countries.
Chrysler have already reportedly approached Chery about buying up Chrysler, or parts of Chrysler, for a low price. However it appears that both parties have a difference of opinion on the matters.
Could it be that Chrysler have opted for Great Walls small car range over Chery, or are Chrysler struggling more than previously expected?
The Chevrolet brand is seriously tainted with their ‘interesting’ history of financial disasters, if it wasnt for rental firms and government agencies buying their vehicles, they would have gone bankrupt a long time ago.
However, their sub-brands such as Jeep, do have a lot of potential, which maybe why they have signed up with Great Wall – is their any chance that Great Wall Motors will start producing Jeeps in China, the Wrangler looks to have been well received in China, but if it was produced in China it could be sold at a much lower price and as a ‘fashion item’
The ‘Chevrolet’ brand?????????????
maybe he means Chrysler?!
Ash,
It confirms what I mentioned on the last post about Changan. Believe that a least one part of Chrysler Group will be taken by Chery. The 3 Americans are approaching as much as they can from the Chinese Brands. Chrysler is right now working with two possibilities: Chery, Great Wall and Dongfeng, and we have not consider which others they have met already.
Will be a good business for the Chinese Industry. Believe that if this estimate runs to a concrete conclusion, in not more than 8 years there will not be any American Independent Carmaker anymore. Because the selling of the brands would much probably just adjust the problems of cash flow they have for the next 8 to 10 months.
Best regards,
J.I.Hosang
Hosang so wong. Big three will turn the corner, maybe in chapter 11 but they will. Just want to clear the air. What does the PRC or Chey do in the way of retirement programs for the worker? Nada (nothing). You will see adjustments for sure but what is in the wings at GM and Ford will make petrol a thing of the past and the rest of the world will once again be forced to copy. Most american cars (and jap ones) will go well over 125,000 miles without a major repair. The BAM I have before I transplanted us power in it wouldn’t gop 100 km’s without crashing. So how many miles and years does the average chinese car go before it dies? 500 km’s? American junkyards are filled with import shit labels that have come here cheap and died: Yugo, Daewoo, Opel just to name a few. So if the Chinese want to come I say come. But you won’t last 2 years without a good, no great network and a dependable car. Also if a Chinese car does come to the US there won’t be the tariffs the PRC has placed on US brands…I bet if the same Ford I buy doesn’t cost 2x as much in Beijing there would be an outcry to protect the Chinese carmakers. Bottom line don’t gloat unless you are willing to really have free trade. There is a rason why the US worker is still the most productive and QA minded in the world. That’s the way it is.