Chrysler's Chinese Car (Dodge?) Likely to Cost $10,000

Washington DC July 6, 2007; The AIADA newsletter reported that Chrysler won't roll out a $7,000 car when it brings the first Chinese-made American-brand small car to the U.S. market in 2009, U.S. industry analysts said Thursday.

The Detroit Free Press reports that rather than hit the streets with an extremely cheap set of wheels, Chrysler and Chery will more likely beef up the Chery A1 to about $10,000 with features expected by American consumers.

Shortly after the Chinese government gave the OK to a deal between the two automakers, Chery's president indicated that a version of his company's new A1 car will be sold in the United States at a price of $7,000 - half the price of the cheapest Chrysler vehicle on the market today. His statements appear to be at odds with those of Chrysler Chairman Tom LaSorda.

Erich Merkle, director of forecasting for IRN Inc., doubted that Chrysler would accept the $7,000 price tag. "If I were Chrysler I don't think I would sell it that cheap. I think you could sell it for more ... and make a profit off of it," he said. "Why create a price war if you don't have to?