NEWS: Chrysler-Chery Small Car Plans Off the Table

By Joshua Duval - December 10, 2008
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If you had any hopes of seeing the wicked 2007 Dodge Demon concept put into production, they have just been dashed. According to Mike Manley, executive vice president of Chrysler's international sales and marketing, talks with Chery, the Chinese automaker Chrysler has been discussing sourcing a small-car from, have stopped for good.
"Chrysler LLC has confirmed that Chery Automobile Co. and Chrysler have mutually agreed that it is in each company's best interest to conclude their discussions on a strategic cooperation agreement that have been active since July 2007," Manley said.
"The economic situation and market environments around the world have changed significantly since the agreement was signed."
Chery was to build a small car for Chrysler's Dodge brand-rumors were circulating that the car could be a version of the 2007 Dodge Demon concept, the 2006 Dodge Hornet concept, or a reworked version of one of Chery's existing models. With the current economic climate as hostile as it is right now, the fallout is not completely unforeseen.
Chrysler CEO Bob Nardelli took some hard hits last week during Congressional testimony. In the eyes of some lawmakers, Chrysler's request for government aid is seen only as a way for the company to outsource its production to companies like Chery and Nissan. Chrysler will build Nissan's next-generation full-size Titan pickup, while Nissan will build a small car for Chrysler.
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