Chrysler Partner Chery Is On/Off on "Baby" Chrysler
So now Cerberus owns Chrysler. How is that affecting previous deals made between then DaimlerChrysler and other entities? Well, one deal that is popping up is Chrysler's agreement with Chery Automobiles, a Chinese auto manufacturer that had agreed to supply Chrysler with low-cost cars. (Pictured is the Dodge Hornet Concept, what is considered the most likely candidate to be built by Chery.) Pre-Cerebus Chrysler had been looking for ways to become global. And the Chery deal, made in December of last year, appeared to be a good step in the process of achieving that goal. Since Cerebus' acquisition was announced, reports the Detroit News, Chery has said that it wants to "re-evaluate" its deal. What does that exactly mean? Well, we may never know. Shortly after Chery's "announcement" broke out, the Chinese automaker swiftly denied it. Reuters (via the CHINAdaily) now reports that the German paper that reported the news had "misquoted" Chery and that the Chrysler/Chery plans were still in effect. Our take? We smell a retreat. Chery suddenly realized it needed the alliance more than Chrysler needs it to make subcompact cars and is desperately trying to retrack its words. We suggest it get another spokesperson.
Pundits are now calling the sale of Chrysler the "Deal from Heck".