DaimlerChrysler said on Feb. 27 that its supervisory board had given approval for its troubled U.S. unit Chrysler to form a limited partnership with Chery Motor Company of China. The board "approved the framework of a limited partnership to develop small vehicles between the Chrysler Group and Chery," DaimlerChrysler said in a statement.
"Under the non-equity partnership, Chery-built vehicles will be distributed under Chrysler brands, primarily in North America and western Europe," the company said.
For Chrysler, the deal meant that it could "become a bigger player on the global automotive stage by giving it access to products in new segments more quickly, with less capital spending."
Chrysler's major competitors in the U.S. and Europe already had similar arrangements with Asian manufacturers for vehicles in those segments, DaimlerChrysler said.
Copyright Agence France-Presse, 2007
