Stuttgart- Chery, the Chinese carmaker, has frozen a cooperation agreement with Chrysler, saying it was surprised by the US automaker's demerger from DaimlerChrysler, an executive told the German newspaper Handelsblatt on Monday. The general manager of Chery, Zhang Li, was quoted as saying Chery wanted to renegotiate the deal and had halted their first project.
He said Daimler's sale of 80 per cent of Chrysler to private- equity investor Cerberus had "fundamentally" changed the situation and utterly surprised Chery.
The two agreed in November on a tie-up. Chrysler had been planning to offer a Chery-made small car in the United States.
"We are still talking to Chrysler but we have had no contact yet with the new owners," said Zhang.
Last week Chrysler chief executive Tom LaSorda spoke of an even closer alliance with Chery. The Chinese company is expected to seek better terms in fresh negotiations. Handelsblatt reported Chery might seek to acquire the "Dodge" brand.
Zhang said this was just "a rumour," but did not deny it. Chrysler has stressed it wishes to keep its three brands, Jeep, Dodge and Chrysler.
