Chrysler, Chery Small Car Project is Off

Back in 2005, I wrote that a Chinese automotive company by the name of Chery Automotive was planning to import a car to the US with an unusually low sticker price – the $6600 Chery QQ. Based on a model ripped off from GM, the Chevy Spark, the little Chery could have turned the domestic automobile market on its side by undercutting all competitors by several thousands of dollars.

Alas, the Chery deal fell through and the company isn't planning to bring the QQ to the US any time soon. However, as recently as last year Chery was working on an arrangement with Chrysler LLC where the American automaker would import the QQ and sell that car as a Dodge, but now that arrangement has also collapsed as Chrysler's financial predicament has forced the two automakers to cancel their deal.

In some ways the Chery QQ deal could have been a huge boon for Chrysler. With absolutely no subcompact model in its portfolio to speak of, Chrysler could have used the QQ to stimulate sales and dealer showroom traffic.

Back during the 1970s and 1980s when Chrysler needed a small car, they turned to their Japanese partner, Mitsubishi, who supplied several Dodge and Plymouth models to the company. These cars were very small, highly economical, and cheaply priced. You may remember them as the Plymouth Champ and Dodge Colt to name just a few of the Mitsubishi cars sporting fresh badges on American highways.

Both companies have issued press statements noting the canceling of their relationship citing changes in the corporate direction of both companies as the reason for canceling the QQ project. Of course, Chrysler is the one struggling the most as the automaker is still try to secure funds from the federal government as of this writing.

Will we see an ultra low cost car on our shores anytime soon? Perhaps in a few years when the global economy settles down. But for right now, the only Chery we'll see are those featured on websites dedicated to Chinese cars.