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Chery, Chrysler may reach partnership agreement in first half year, official says

Shanghai. March 10, 2008; (Gasgoo.com) China's Chery Automobile Co is expecting to forge tie-up relations with Chrysler as early as the first half of this year, a senior Chery official confirmed to local Chinese newspaper last week.

The business newspaper Information Times report cites Jin Gebo, top aide to Chery's general manager, as saying that "Talks between the two parties are accelerating and a final agreement is likely to be reached as earlier as the first half year."

The report said Chery plans to use land and technology as investment in the joint venture while Chrysler will fund the project with cash. And this joint venture will be a 50:50 partnership.

Chery is to build Dodge-badged A1 and A3 model at its third plant, which has an annual capacity of 250,000 vehicles, according to the report.

The Chery-Chrysler joint venture will be built in the same fashion as Chery and Quantum LLC's joint venture, which was unveiled in earlier this month.

In the Chery-Quantum LLC joint venture, Chery will invest US$270 million in terms of land and technology in return for a 55 percent stake of the joint venture while Quantum LLC, a subsidiary of Israel Corp, will invest US$225 million for a 45 percent stake in the joint venture.

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