It may be time to stop holding your breath. The planned deal between Chrysler LLC and the Chery Automobile Company to bring a Chrysler-badged Chery to our shores seems to be completely over... no, really this time. While there was nothing inherently wrong with the concept of importing the small fuel-efficient cars to North America (even if there were near insurmountable obstacles to overcome in the area of safety and emission standards), both companies have been crushed by the economy. According to a former Chery executive, "I wouldn't place much hope on it... both companies have their own problems to deal with, and both have run out of money." As neither company ever offered a public timetable for the arrival of the cars after the initial announcement early last year, the news is unlikely to come as a surprise.
As it currently stands, gas in China costs about half what it does in most other countries, and the government spends billions to keep it that way. This being the case, expensive hybrids like the Toyota Prius don't sell in very large numbers. Still, there are a number of analysts who predict that gas will go up in China and that cheaper hybrids could begin to get a foot-hold in the Chinese market. To test the hybrid waters, Chery has introduced its home market to a new inexpensive mild hybrid built off its own A5 platform. Like some of the hybrids from General Motors, the A5 adds a belt-driven starter/generator that runs on just 12 volts and allows for stop/start functionality for its 1.6-liter four-cylinder engine. Chery tested the vehicle during the Olympic games and is apparently now ready to begin selling its first hybrid to retail customers in China at about a third of the cost of the Prius. With pricing like that, the expected 10-15-percent gain in fuel efficiency could provide plenty of incentive to choose a hybrid.
In case you were jonesing for a dose of weirdness from the Chinese auto industry today, Chery has complied. Behold the Chery Eastar convertible. China Car Times' headline asks, "The thinking man's Bentley?" Perhaps, if said man is doing his thinking after hitting the all-you-can-eat peyote buffet. Note the deftly-removed B-pillar and beautifully integrated extension between the front and rear doors, complete with a gap in the weatherstripping along the sills. Listen, we have no idea if this is some one-off novelty or something that's actually being considered. What we do know is that a Saabish-bodied 4-door luxo-vert with a Lexus-y nose and Mitsubishi Mirage rear end is exactly the kind of thing that makes following the Chinese auto industry so entertaining.
It's late, we know, but we're not a host short like last week! Chris, Sam, and Dan kick it about what's in the Autoblog Garage, the 2010 Camaro unveiling and other stuff that the Camaro overshadowed. What could possibly hold a candle to the Camaro officially rolling into that garage bay? Not much, but we touched on Honda's Prius clone fighter, as well as Malcolm Bricklin's legal action against Chery Motors after the breakup, but really, we spent a lot of time kicking the Camaro ball around, as it did happen to be the most excitement you could find without going racing. Hit us up at podcast at autoblog dot com with any questions/comments/suggestions, and thanks for listening!
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Back in 2004 serial automotive entrepreneur Malcolm Bricklin announced plans to collaborate with "rogue" Chinese automaker Chery Motors to bring new cars to the US market. Chery is referred to as "rogue" because the company never actually got permission from the Chinese government to get into the car business. Needless to say, the deal eventually fell apart when Chery decided to hook up first with Israel Corp and Quantum LLC for a different joint venture which has also yet to come to fruition.
Bricklin's company, Visionary Vehicles, which is now know as V Cars LLC, has now filed a lawsuit against Chery, Israel Corp, and Quantum LLC, et al. The suit is being filed under RICO statutes, typically used to go after mobsters, and V Cars is hoping to pursue Chery for the potential profits the company feels it could have made over the course of the deal. How much? $14 billion.
V Cars claims they provided Chery with business plans and ideas (along with $26 million in up front investments) which they then used for their own business after abandoning the deal. During a conference call today, Bricklin explained that he wants to show Chery and other Chinese companies that if they are going to do business with western companies they need to deal ethically and follow the rules. V Cars is also seeking injunctions to prevent Chery from selling any vehicles based on these plans in North America. The complete text of the suit that has been filed in Federal District Court in Detroit can be read here (Warning: PDF download).
After years of talk, Chery is finally entering the North American market later this year, but the small car will be badged as a Dodge, and it'll be sold exclusively in Mexico. The decidedly un-Hornet-looking A1, which was designed by Bertone of Italy, will be rebadged as a Dodge and virtually unchanged from its Chery twin. While Chrysler execs are adamant that the A1 isn't coming to the US, the Pentastar is still working with Chery on a small car to be sold north of the border. Don't hold your breath waiting for an ultra-cheap Chery in the US, though. Chrysler co-pilot Tom LaSorda says Chery has "three or more years" before the Chinese automaker can meet US safety and emissions standards.
Among the never-ending sea of house-sized LCD TVs, untold navigation devices and cutesy robots at CES are more than a few cars. While last year the theme among custom-car builders was overwhelming gaudiness, this year someone must have written a rule mandating at least a little class.
As we approached the Dolby booth we were a bit intimidated by what we assume is a life-size model of the Transformer Bumblee. Very impressive indeed.
Perhaps the most surprising automotive find at CES was a Chery CrossEastar (shown at right) at the Delphi booth. Seating for eight, luxury to rival at least the Big Three, and an expected bargain-basement price has us looking forward to seeing what the company finally sends us. In the opinion of a dad, aside from the potential quality problems, it's an attractive vehicle. Delphi had it at CES to show its global reach, since it supplies its technology products to the Chinese automaker.
We're sure there were tons more we didn't see, but Ford and GM kept us busy this year. Check out our gallery of 60 high-res images for more cars we spotted CES.
Europeans anxiously awaiting their chance to buy a Chery will have to cool their heels a little longer. Chery's delaying the export of their B21, but it's not for anything major like crash performance woes. According to suppliers, Chery has pushed back production so they can revamp the interior design. The fitment that appeals to the Chinese domestic market is less thrilling to European buyers, so the cabin will get some attention before the B21 swings into production later this year. It won't be long until these cars start finding European buyers. Chery and its peers are getting their collective acts together and while these cars are currently punchlines, they won't be for long.
Well, no, but can you blame us for thinking so? While no one here is a shoe expert like, say, The Manolo, it's hard to look at this forthcoming Chery compact and not think of the ubiquitous (and heinous) sandals worn by Mario Batali and countless suburbanites in apparent need of corrective eye surgery. Look at that rounded, upturned nose -- Croc city, baby! We know that the Chinese auto manufacturers have never shied away from "borrowing" styling elements from other cars in the past, so really, what's to stop them from aping a resin clog design for the S16?
Hot on the heels of Nanjing Auto's merger with SAIC, Fiat has announced it has pulled out of the automotive joint venture it had embarked upon with Nanjing.
The Sino-Italian operation had been a money-losing enterprise for years. Fiat says that Nanjing failed to live up to its commitments to the joint venture after the Chinese auto group took over MG Rover, and that the divorce will enable the Italian automaker to re-strategize its business in China. Fiat is expected to partner instead with Chery Automobiles, which just announced another joint venture with Israel Corp. Fiat and Chery are in the process of setting up another joint venture to produce 175,000 cars annually starting in 2009, and leading to the introduction of Fiat Group division Alfa Romeo to the Chinese market.
The separation affects only the cooperation between Fiat and Nanjing on the production of passenger cars, and doesn't have any bearing on Fiat's truck-building division, Iveco, which cooperates with Nanjing to build vans and with Nanjing's new parent company SAIC on trucks, the two relationships will continue unhindered.