( autoinsidernews ) - The DaimlerChrysler Supervisory Board today finally signed off on the limited partnership between the Chrysler Group and Chery to develop small vehicles. Under the agreement, Chery would build vehicles to be distributed under the Chrysler brands, primarily in North America and Western Europe. While DaimlerChrysler's press release says "the Chrysler brands," we assume it is talking about Dodge, as it is the only Chrysler brand that makes sense for a small car.
Back in December, Chrysler announced a preliminary agreement with Chery to build a new small car in China for worldwide export. At that time, Chrysler Group CEO Tom LaSorda said the automaker was not considering a production version of the Dodge Hornet concept, but rather it would a Dodge-branded Chery model. Word on the street is that Chrysler is now considering a production version of the Hornet, because of quality concerns of Chery vehicles.
While DaimlerChrysler has signed off on the deal, it's still contingent upon approval of the Chinese government.