February 15, 2007
China To Buy Chrysler
As you heard from us in our very first video report of January 9, 2007, Damilerchrysler signed a joint venture deal with Chery Automobiles of China to sell Chinese cars under a Chrysler brand.
Similar deals are already proving successful such as the Toyota Yaris and Honda Fit, both made in China.
China's auto sector is getting extremely competitive as Chinese carmakers jockey for position into the American market. The industry still needs a lot of consolidation but it is expanding exponentially and China is now awash with cash.
Speculation is that a Chinese company, possibly even Chery, might make an offer Dr. Z can't refuse.
Don't forget, the Chinese already own two famous British brands once the pride of the industry: MG and Rover. The Chinese are adept at accelerating economic and technological growth. It took half a century for Toyota to go from joke (the Crown in 1955) to rival GM in US car sales. An American car company and brand such as Chrysler with dense networks of dealers, suppliers, and services, would be the perfect opportunity for a Chinese auto company to leapfrog ahead.
Subscribe to Posts [Atom]