W. Europe will be first to get Dodge small car

CHINA AUTO SHOW

Hornet Concept (Photo: DaimlerChrysler)
Chrysler head says decision on partnership might come by end of the month

Jason Stein | | Automotive News Europe / November 27, 2006 - 10:06 am BEIJING -- Western Europe will be one of the Chrysler group's key markets when it launches a small car for the Dodge brand.

Chery Automobile of China is the leading candidate to produce such a vehicle for Dodge, said Chrysler group CEO Tom LaSorda.

He expects a decision by the end of the year, if not sooner. "We could even have a decision by the end of the month," LaSorda told Automotive News Europe on the sidelines of the Beijing auto show November 17.

Chrysler needs a partner for the small-car project because of the high costs and relatively low profit margins associated with building such a car. It has been talking with potential partners since earlier this year.

"We are down to two and Chery is the leader," LaSorda said. "But these kinds of negotiations are never easy."

He declined to name the other potential partner. Media reports have suggested that Chrysler also is talking with PSA/Peugeot-Citroen or Hyundai about the project.

LaSorda said a partner could either co-design the small car with Chrysler or develop it alone. He also hinted that more cars could follow as a result of the partnership.

"It will be the [small] segment initially at least," LaSorda said.

In addition to western Europe, Dodge initially would aim the small car at Mexico and Canada. Other markets, such as the US, would come later.

In Europe, Chrysler wants an entry-level car positioned below the Dodge Caliber lower-medium hatchback to help drive Dodge's expansion there. The car possibly could be based on the Dodge Hornet concept that debuted in March at the Geneva auto show.