Chrysler Considers Selling Transmission Assembly Line

As more details of the Chrysler and Chinese based manufacturer Chery venture start to surface. AutoWeek reports that Chrysler is considering selling their small car FWD transmission line, and then sourcing them back again from Chery. Chery would eventually move the transmission assembly to China, where it can more closely monitor the assembly and reap the benefits of lower production costs.

Chery would in turn benefit from gaining a proven transmission they could now apply across their entire lineup and give a boost in assembly and engineering expertise that can be used in the near future. An added benefit to Chery would be a increase in operating revenue from the ongoing supply of transmissions to Chrysler. This revenue would allow Chery to potentially accelerate development and marketing of models destine for the US.


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tomloy - 1/24/2007 5:51:09 AM

+1 Boost

Have US auto executives bought the Ronco home lobotomy kit? Who do they think are going to be buying their $38000 jeep grand cherokee limited if they export jobs to china?