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Chrysler and Chery Automobile Co. are set to bring Chinese-made Chrysler cars to the United States within the next two and a half years.
Chrysler Group Chief Executive Tom LaSorda announced the new partnership at a press conference on July 4 after preliminary negotiations were stalled last year by the sale of Chrysler to Cerberus Capital Management.
China now occupies the position as the second-largest market for autos in the world and currently exports vehicles to Africa, South Asia, and the Middle East.
Chery, based in eastern China, is a medium-sized operation with fast sales growth numbers in its home market. The company offers a line of inexpensive vehicles, but will need to overcome skepticism in Europe and the United States about the quality of its products for the partnership to work.
For its part, Chrysler hopes to see its sales beyond the boundaries of North America double in the coming five years.
The Chrysler-Chery alliance is another step toward the infiltration of the American auto market by Chinese produced vehicles.
This year Zhongxing Automobile will bring some 50,000 SUVs and pickups into Mexico, with plans to enter the U.S. market within two years.
The major selling point of the new Chinese vehicles will be their price point, which is predicted to be as much as a fifth cheaper than comparable brands by existing competitors.
The further globalization of automobile production and marketing may signal even greater troubles for the embattled Detroit companies who are struggling to survive in the face of growing Asian competition.
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