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Chery to build Dodge subcompacts for DCX

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Some news regarding collaboration between DaimlerChrysler and Chery. Previously it was reported that Chrysler will name it’s subcompact car partner by the end of 2006, with talks currently on-going with a few partners. Subcompacts which are known for frugal fuel consumption – important in these high fuel price days – account for 1% of the overall US market currently, but it is expected to double in amount next year.

DaimlerChrysler is said to be in final talks to build cars in China and export them to the US under the Dodge brand to take advantage of the cheaper costs there. This move will follow Honda Motor Co’s recent recision to export vehicles built in China. However, DaimlerChrysler is keeping mum on the issue, and it is said that this collaboration is very controversial within DaimlerChrysler, with opponents questioning whether cars produced in China by Chery can meet quality standards.

Other partners being considered are Mitsubishi Motors Corp, and Hyundai Motor Co Ltd. “We know we can’t do it alone. The capital expense alone would be very high, said Chrysler Group CEO Tom LaSorda.

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Dodge Attitude

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We all know Dodge doesn’t really have a small car in it’s stables, which explains the Dodge Hornet concept and Chrysler’s on-going search for a partner to build small cars with. But somewhere south of the USA, in Mexico there are small Dodge cars going around the streets – the Dodge Attitude.

Looks familiar to you? You bet. The car is actually a rebadged 2006 Hyundai Accent, one model newer than the Accent that is available on our local shores right now. Dodge also sells a Dodge Atos – you guessed it! – a rebadged Hyundai Atos.

DaimlerChrysler and Hyundai used to have some form of strategic alliance together back in the year 2000 which involved DaimlerChrysler holding a 10% equity in Hyundai. This stake was sold in the year 2004 at a profitable US$912 million. It bought the stake in 2000 for US$428 million. They had a few projects together, even a small car platform but I don’t know what has happened to that now, since Chrysler is looking elsewhere for a small car development program. Another product of the partnership is the World Engine (1.8L to 2.4L), developed under the Global Engine Manufacturing Alliance, or GEMA – a collaboration between DaimlerChrysler, Mitsubishi Motors, and Hyundai.

I wonder if someone will try to stuff a Hemi into a Dodge-badged Hyundai Accent.

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2006 Dodge Hornet Concept

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The Dodge Hornet Concept is a 5-door hatchback slightly larger than a MINI Cooper. It made it’s world debut back in February 2006 at the 2006 Geneva Motor Show. The Dodge Hornet Concept was conceived after meeting were held regarding requests from U.S. Dealers for a true entry level Dodge vehicle below the Dodge Caliber which retailed for about USD13,000.

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Chery to build small car for Chrysler

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Chrysler is looking into using Chery Automobile to assemble a small car for the international non-US market. The car will be sold under the Dodge or Chrysler brand. This could allow Chrysler and Dodge to enter third-world markets like South East Asia, which are not big fans of Chrysler’s big cars with huge fuel-guzzling engines.

Daimler Chrysler already has an existing partnership with a Chinese company, Beijing Automotive Industry Corp. The joint venture assembles SUVs for Daimler Chrysler and recently the Mercedes Benz E-Class. But the JV company lacks experience and skills to manufacture small cars, which Chery has.

Chrysler could be seeking to produce the Dodge Hornet concept, a small B-segment vehicle smaller than Dodge’s smallest car, the Dodge Neon. The Dodge Hornet Concept was shown at the Geneva Motor Show in March 2006.

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Ram Rash Advertisement

dodgelogo.gifVideos from Dodge’s new series of advertisements for the Dodge Ram. The campaign is known as “Ram Rash”. They really have NOTHING to do with the car it is advertising, but a whole lot different from Volkswagen’s Fast and Un-pimp Your Ride ads. Have a good weekend guys.

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