Chrysler delays small-car plan

Harald Hamprecht Automobilwoche / August 7, 2006 - 6:00 am LONDON -- The Chrysler group is giving itself more time to find a partner for a new entry-level Dodge to be sold in the United States and Europe."At the start of the fourth quarter, at the latest, we will announce who we will build the new Dodge model with," Chrysler CEO Tom LaSorda told Automobilwoche.

Frank Klegon, Chrysler's development chief, said in January that the decision would be made during the first half of 2006.

In addition to Volkswagen, Hyundai Motor Co. and Mitsubishi Motor Corp., Chrysler is talking "with yet another European (manufacturer) as well as a Chinese manufacturer," LaSorda said.

Discussions with a Chinese automaker involve Chery, industry sources said.

LaSorda said he had no quality concerns about working with the Chinese. VW is seeking the business because it would be able to build a five-door, front-wheel-drive car on the same platform as the next Polo, thereby reducing costs.

By producing a new small car, Chrysler is responding to the trend toward small fuel-efficient cars. The Dodge vehicle may be called the Hornet. "We will also sell this model in Europe," LaSorda said.In contrast, Chrysler sees "insufficient demand" for sporty cars such as the Dodge Challenger and Charger in Europe, said Joe Eberhardt, the Chrysler group's sales and marketing chief.

And Chrysler "doesn't want to unnecessarily distract" dealers as it pushes to increase European sales, he said. "We have to cut back on the pace of our new introductions, since our sales training and showroom capacities are limited."his model in Europe," LaSorda said.

In contrast, Chrysler sees "insufficient demand" for sporty cars such as the Dodge Challenger and Charger in Europe, said Joe Eberhardt, the Chrysler group's sales and marketing chief.And Chrysler "doesn't want to unnecessarily distract" dealers as it pushes to increase European sales, he said. "We have to cut back on the pace of our new introductions, since our sales training and showroom capacities are limited."