Future Compact Sedan

DaimlerChrysler has announced it's in negotiations with one of its Chinese partners to build a subcompact that'll be exported to the U.S. for sale in Chrysler Group showrooms. The car will be smaller than the Neon, which is to be replaced for 2007 with a production version of the Dodge Caliber Geneva concept. DC also announced it'll source parts and components in China for use in Mercedes and Chrysler factories around the world and will open a Mercedes-Benz design studio in Beijing.

Meanwhile, General Motors and Chery have unveiled new Chinese-made cars to the world. And no, the Chery wasn't a copy of GM's car.

Chery showed a four-seat steel-topped convertible designed by Pininfarina. It'll be one of the first Chinese Cherys Malcolm Bricklin's Visionary Vehicles will import to the U.S. in 2007. The compact vario-roof car will be priced at $19,000, nearly $10,000 less than the upcoming Pontiac G6 convertible.

Chevrolet will export a Chinese-made Aveo sedan to 120 other countries, including the U.S. GM recently added Chevy to its Chinese lineup, along with Cadillacs, Buicks, and Wulings it builds there, and imported Saabs. Its Sail subcompact was moved from Buick to the Chevy lineup.

And don't think Chinese buyers have to put up with secondhand technology: Ford has announced it'll build a sedan version of the all-new C1-based Focus (like Americans, Chinese drivers prefer sedans to hatchbacks) for China. American Focus buyers will have to make do with a warmed-over version of the old car. Power is from a 1.8-liter Duratec four.