Chrysler agrees to sell Chinese-made cars in U.S.

Daimler Chrysler has approved a plan to start selling Chinese-built cars in the United States as the carmaker sees its deal with China's Chery Motor as a cheap way to enter the growing entry-level market, the Los Angeles Times reported Wednesday.

Com pany executives said Tuesday that they expected the Chinese government to approve the agreement by the end of March, according to the report.

The pact calls for Chrysler, Daimler Chrysler's U.S. arm, to work with the Chinese company to design and engineer subcompact cars, which would be built in China and exported to North America and Europe under Chrysler brand names including Jeep and Dodge.

The subcompacts would be the first Chinese vehicles sold in the United States and probably open the door for other Chinese automakers, said the newspaper.

German parent Daimler Chrysler is exploring the possibility of selling or spinning off its ailing U.S. arm, which it acquired in 1998, but the disposition of Chrysler isn't expected to upset its agreement with Chery.

The agreement, disclosed in December, is still subject to Chinese government approval.

Chrysler Chief Executive Tom LaSorda has said earlier that cars from Chery could start arriving in 2009.

2007-03-01