(autoinsidernews) - Tom LaSorda, CEO Chrysler Group has signed a preliminary agreement with China's Chery Automobile to build a small car the U.S. automaker, according to Automotive News. The two companies have long been rumored to be in talks about a compact car collaboration, reports Trend.
Chrysler spokesman Jason Vines didn't confirm the brand that would sell the new car, but it is widely expected to be a Dodge branded B-segment vehicle inspired by the Hornet concept (shown). Chrysler says it needs a partner for the car because it cannot profitably produce a small car in the United States. The new car would be sold in the United States, Canada, Mexico, and Europe.
The deal still requires approval from DaimlerChrysler's supervisory board, which meets in January, as well as the Chinese government.