DCX, Chery Tie Knot on Small Car

Washington DC January 2, 2006; The AIADA newsletter reported that DaimlerChrysler's Chrysler division has entered into a partnership with China's Chery Automobile for the Chinese manufacturer to begin building small cars sometime in 2007 to be sold worldwide under the Chrysler, Dodge or Jeep badge, reported The Washington Post.

On Friday, Chrysler said the cars are based on an existing model that is being modified jointly by engineers from both companies. Chrysler spokesman Jason Vines said Chery may also build another larger vehicle for Chrysler.

Chrysler's supervisory board will consider the deal when it meets next month. Vines said Chrysler would unveil a prototype "fairly soon," although no date has been set.