Chrysler China Confirms Ending Of Chery deal

Shanghai, December 10, 2008: (Gasgoo.com) Chrysler China confirmed today that Chrysler LLC has put off the deal with Chinese automaker Chery Auto to build small cars, said Gasgoo.com, citing a reply from the U.S. automaker's Shanghai agency.

Chrysler International Corporation Shanghai Rep. Office said both Chrysler and Chery have gone through major internal changes and evolution in the past year, resulting in different business directions and priorities than one year ago.

"As a result, many of the original premises the two companies had when entering into the agreement no longer apply, so the two sides have decided to develop independently and promote their own businesses."

Asked if it is the current financial crisis that has made Chrysler quit the cooperation plan, the office responded that the decision was indeed made several months ago and thus it has no relation with the crisis.

The Chrysler office said the Asia Pacific and China are very important markets to any automakers, especially to Chrysler. At present, China is one of the fastest growing markets for the U.S. automaker.

Sales in China, Chrysler's largest market year-to-date outside North America, grew 217 percent to 20,655 units in the first ten months of this year.

For more information please visit http://www.gasgoo.com