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July 02, 2008 - Chrysler signed a memorandum of understanding with China's Great Wall Motor in mid-June to seek opportunities of wide-ranging cooperation, reported 21st Century Business Herald today.

The memorandum shows that the initial cooperation between the two sides includes selling vehicles of both Chrysler and Great Wall brands simultaneously through their sales network and collaborating in auto parts and technology sectors. The cooperation is looking to the global market, said sources familiar with the matter.

Great Wall Motor Company Limited, a Chinese auto company mainly manufacturing SUVs and pickups, entered the passenger car market last year. Though little is unknown about Great Wall’s research and development capability on passenger vehicles, its production line and auto parts may be used by Chrysler.

As cooperation with Chery Automobile is suspended, Chrysler is seeking more cooperative opportunities in China. Chery spokesman Jin Yibo declined to comment on this matter. "We have no idea about whether Chrysler and Great Wall Motor signed a memorandum of understanding," he said.

Chrysler CEO Tom LaSorda had signed a strategic cooperation agreement with Chery director Yin Tongyao on July 4, 2007. But one year has passed, and there is no sign of their cooperation.

Though Chrysler is seeking other cooperative partners, Chery tends to be its most important potential partner as it is the most powerful one in Chrysler's possible partner list.

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Chrysler has reportedly been making moves on Great Wall in a bid to cut back their massive losses in their home territory.

Chrysler and Great Wall signed a memorandum of understanding in the middle of June which if it leads to greater things, will see Chrysler products in Great Wall dealerships, and vice versa. The deal could also see Chrysler and Great Wall working together in various technological areas, previously Great Wall invested several billion RMB in a R&D center.

Since the Chery-Chrysler deal seems to have only produced a rebadged Chery A1 to date, Chysler seems to be looking for other cars to fill up its line up. The rebadged Chery A1, now named a Dodge Breeze, is going to be aimed at the South American market which will give Dodge a more competitive edge in those areas.

sources: Gasgoo and China Car Times
 

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Chrysler looks quite desperate now, Chery, Nissan and now Great Wall.

But still though, Chrysler is the worst performer out of all in the US now.
 

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Thats right Chrysler even had to come out and issue statments dening rumours about bankrupcy.
One fact is that Chrysler main products are suv's, pick up's and mini van's huge gas guzzlers and the sales are sloping. 2008 it will be a very bad year to them for sure
 

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Chrysler looks at auto alliance with Chinese

5 hours ago

BEIJING (AP) — Chrysler LLC, looking for foreign partnerships to help drive its business as U.S. sales slump, announced a deal with China's Great Wall Motor Co. on Friday to study sharing technology, components and distribution.

Chrysler, the smallest of the three major U.S. automakers, is trying to expand sales in the fast-growing Chinese market and has a deal with China's Chery Automobile Co. to produce a low-cost model for sale under its Dodge brand.

Under the new agreement, Chrysler and Great Wall will look at ways to use each other's distribution networks and component and technology capabilities, Chrysler said in a statement released in the United States.

The agreement "represents part of Chrysler's ongoing efforts to explore opportunities to expand the company's involvement in the development of China's auto industry, as well as growing Chrysler's global business through the right partnerships," Chrysler spokeswoman Shawn Morgan said in the statement.

Morgan said the companies were not releasing any more details.

The agreement comes as American automakers look to China to drive sales at a time of slumping U.S. demand. China's own young but ambitious producers are looking at foreign partnerships to improve their technology and marketing.

Great Wall, based in Baoding, a city west of Beijing, is best known as a producer of SUVs and trucks but is expanding into cars.

Chrysler, in Auburn Hills, Michigan, says sales through the first five months of this year are down 19 percent from the same period last year. The company has denied rumors it is close to seeking bankruptcy court protection.


http://ap.google.com/article/ALeqM5hq6GDk7UCqSJxVu_OBVTErR0SI3gD91MRQK80
 

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Chrysler's Chinese Gambit

July 17, 2008


Chrysler is showing signs of desperation. The company signed its second deal with a Chinese carmaker in recent months—this one one apparently aimed at filling the company’s void of small, fuel-efficient cars as quickly and cheaply as possible. The partnership with Great Wall Motor is vague in its goals and expectations. The companies will explore long-term business ties in “distribution, components and technology.”

That could mean more Chrysler models being built in China—they already make four there but sell 12 models right now—rather than bringing any Great Wall products to the U.S., since, like Chrysler, Great Wall specializes in trucks and SUVs. Some of Great Wall’s engines might be useful in adding low-cost, fuel-efficient power to future products, but that would have to be weighed against the cost of making them emissions-compliant.

Another route might be using Great Wall to speed development of alternative propulsion and fuel technologies, helping Chrysler to cut down on its three-to-five year prediction of how long it will take to get a significant number of hybrids on the market. Like Chrysler, Great Wall is privately held, which also gives it more flexibility in working on such projects.

Last year, Chrysler signed a deal with another Chinese automaker, Chery Automobile, to jointly produce small cars—which the company needs to fill the lower end of its product lineup. Right now, the smallest Chrysler model is the Dodge Caliber, a 3000-pound compact car that tops out at 29 mpg highway with its 1.8-liter 4-cylinder engine. Chery and Chrysler are jointly developing and marketing small cars for some overseas markets, but have been silent as to when any of the products will be available in the U.S.

Chrysler can use the cars as soon as Chery proves that it can produce a quality and style of small car capable of making it in the American market. This is a genuine issue, because pure price and size will not move iron, even in this hot market for small cars, as GM found out with its dowdy Daewoo-built Aveo.

Chery also has hybrid technologies ready to go. The company has shown prototypes, and half of its cars will be hybrids by 2010.Bringing over some of that technology—even if it is adapted to existing Chrysler product—would advance the company beyond its announced plans, which will leave it squarely in last place among the major American automakers.

http://www.hybridcars.com/carmakers/chryslers-chinese-gambit-0717.html
 

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According to media reports today, Chrysler and Great Wall are planning to work together to produce an A-segment car which will be produced by Great Wall, but sold worldwide with the Chrysler badging.

Chrysler reportedly sent engineers to Great Wall in August of this year to work with Great Wall to create a super mini which would be worthy of taking on the Chrysler badging and would be upto world standards design, and safety wise. Work on the A-segment car is expected to be finished by the end of the year, which may indicate that it could be a reworked version of a car that Great Wall already has, or is close to completing.

The Chery-Chrysler joint venture does not appear to have gotten anywhere very quick, with only a rebadged Chery A1, aka the Dodge Breeze being spotted so far, there were rumours that the Chery A3 would join the Dodge line up for developing countries in South America, but that has yet to be seen.

source: China Car Times, October 07, 2008
 

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Chrysler-Great Wall JV Comes to a Halt.

March 17, 2009
Last year, Great Wall Motors and Chrysler signed an agreement to share parts, technology, and sales networks in both China and the USA. However, according to this afternoons media reports it appears that the JV has come to a halt as Chrysler is fighting for survival and Great Wall are concentrating on their own development.

The agreement signed last July stated that Chrysler were searching for expansion in China, however, the sudden turn in the economy has left Chrysler in a poor situation. The JV could have been the start of something really beautiful for both companies, as GWM already make an interesting array of SUV’s (perfect for Jeep tech) and have plans for a very large R&D center (perfect for low cost research). GWM also had plans to make their own range of sedans, which could have been aided by a Chrylser input.

The major issue for Chrysler may not be the economy, but rather their latest JV partner, Fiat, who have a rather interesting ongoing spat with Great Wall motors over the Perry mini car, that looks rather like the Fiat Panda. Could have Fiat played a hand in stopping the JV? Possibly.

Great Wall sold 125,000 vehicles in China last year, and exported 55,000 to foreign markets. This year they are pushing to sell 200,000 vehicles, GWM are reportedly planning to use the lull in sales to focus heavily on R&D which will give them excellent cars in which to push into Europe once the economy picks up.
source: China Car Times
 
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