The global economic recession has officially slowed Fiat's Big Love-style partnerships, as the Italian automaker's deal with Chery to produce models for the Chinese market has been put on hold. In August 2007, the two companies agreed on a 50/50 joint venture to produce 175,000 vehicles per year beginning in 2009. Chery spokesman Jin Yibo said that vehicle production "won't happen this year" and no date has been given for Fiat and Chery to begin building vehicles for China.
While global auto sales have taken a huge hit, the Chinese market has proven more resilient. The land of the Great Wall actually sold more cars and trucks in January and February than the United States. Given the upbeat car market in China, delaying the joint venture may sound a little strange. Fiat could be delaying the partnership to concentrate on its potential partnership with Chrysler, which would bring the Italian Automaker back into the (usually) lucrative US market.
If, like us, you've been following the Volvo saga pretty closely, you'll remember that several Chinese companies are considered to be among the top bidders for the Swedish automaker when Ford officially opens the bidding. Although Geely has said they aren't interested, that didn't rule out other Chinese outfits.
Well, today we have word via Chinese news reports that Chery, for one, has been given the greenlight to enter the Volvo lottery by the Chinese government. Other interested parties are rumored to be Dongfeng Motor Group and Chongqing Changan Automobile Co, along with a "European constellation," whatever that means.
Ford is looking to recoup the bulk of its initial $6.45 billion investment when it sells Volvo, so that might put it out of Chery's league. But who knows? Chery Auto just got a 10 billion yuan ($1.47 billion) loan to help it grow globally and was also given a line of credit by the bank, so only time will tell.
Chery, the Chinese automaker with a sweet-sounding name, is serious about entering the European market as quickly as possible.
Proof of such can be seen in the A6 Coupe (we're sure Audi's lawyers are keeping tabs on this one too), which has recently been spotted testing near Lotus' corporate headquarters in Norfolk, England. Might the Chinese upstart be getting some much needed know-how from the British brand that's known for its excellent chassis tuning? Seems likely.
Chery also received help on the A6's styling from none other than classic Italian styling house Bertone, and it's a pretty good looker in its two-door hatchback configuration. Future versions are said to include a sedan, a two-door shooting brake-style wagon and possibly a hardtop convertible. Power will come from either a 2.0-liter turbocharged four cylinder or a naturally aspirated 3.0-liter V6, both of which have reportedly been certified for sale in the U.K.
The Chery S16 is called a sedan even though it only has two doors, a hatchback, what appears to be zero rear headroom, and is about 22 inches shorter than a Chevy Aveo. From the front, the styling conjures words like "bizarre" and "Picasso" and "flounder," but -- and perhaps it is the hour -- we find it kinda cute. At the rear, things get confused with a host of grafted designs that don't blend so well together.
Regardless of whether it's a sedan or what you think of its looks, Chery plans to release it by May of this year. What the company needs now is a name, and is appealing to the Chinese public to provide it with one. We don't understand why Chery is still in the hunt -- the car came with the perfect name when it was launched at the 2005 Shanghai Auto Show: Chery Wow. Indeed.
Chery's supposed lack of money hasn't stopped it from going ahead with its multi-model Tiggo SUV rollout. The Tiggo3 -- which looks much like a RAV4 -- has done well for Chery, so now it's preparing the Tiggo5 and Tiggo6.
The Tiggo5 is expected to do battle with the VW Touareg and BMW X5 (and by extension, the Shuanghuan CEO). With rugged yet basic styling penned by Bertone, the Tiggo5 will be powered by Mitsubishi engines including the 3.0-liter V6 and 2.0-liter turbo.
Click above for high-res gallery of the 2008 Chevy HHR SS
The Pontiac Solstice GXP, Saturn Sky Redline, and Chevrolet HHR SS are plenty of fun with 260 horsepower underfoot, and we can only imagine that the joy quotient increases as power improves. General Motors' performance division knows as much, and it's now offering an LNF Turbo Upgrade kit to kick its 2.0L turbo direct injection engine into gear. The kit consists of a new engine calibration and MAP sensors that will push your turbo four to 290 horsepower and up to 340 lb-ft of torque with the six-speed manual transmission (315 - 325 lb-ft with a slush box). The new factory turbo kit also keeps the precious warranty intact, which is a huge bonus over other aftermarket setups.
The LNF Turbo Upgrade also gives the GXP, Redline and SS the same "no-lift shift" functionality as the Cobalt SS Turbo, which enables you to shift without taking your foot off the accelerator. The kit also bumps the redline by 200 to 6500, but the hulkified 2.0L engine will now demand premium fuel to deliver its increased power delivery. The General is also working on a similar upgrade kit for the Cobalt SS, and it should arrive at your local Chevy dealer during Q1 2009. The LNF turbo kit delivers some added pop to three already fun vehicles, and it can be purchased at a GM dealer for $650. Is it worth the extra coin? It's up to you, but we're guessing it couldn't hurt. You can check out assembly instructions for the LNF Turbo Upgrade kit here.
Gallery: In the Autoblog Garage: 2008 Chevy HHR SS
Well, crap. For all of us who were eagerly awaiting the arrival of the Chinese-built Dodge Demon or the Chinese-built Dodge Hornet or the Chrysler-badged, Chinese-built Chery A1, fugetaboutit. It's officially not happening.
Mike Manley, Chrysler's executive vice president of international sales and marketing, tells The Detroit News that talks between the two companies have officially ended. Manley cites economic troubles in both the U.S. and China as the main reason the two have decided to go their separate ways. While Chrysler CEO Robert Nardelli is in D.C. begging for government money, Chery has its own problems in China.
Then again, who knows what might happen after the whole bailout saga has ended? With a cash infusion, Chrysler could restart its partnership with Chery. Or, denied a government loan, Chrysler could find itself bought by the Chinese company.
It may be time to stop holding your breath. The planned deal between Chrysler LLC and the Chery Automobile Company to bring a Chrysler-badged Chery to our shores seems to be completely over... no, really this time. While there was nothing inherently wrong with the concept of importing the small fuel-efficient cars to North America (even if there were near insurmountable obstacles to overcome in the area of safety and emission standards), both companies have been crushed by the economy. According to a former Chery executive, "I wouldn't place much hope on it... both companies have their own problems to deal with, and both have run out of money." As neither company ever offered a public timetable for the arrival of the cars after the initial announcement early last year, the news is unlikely to come as a surprise.
In case you were jonesing for a dose of weirdness from the Chinese auto industry today, Chery has complied. Behold the Chery Eastar convertible. China Car Times' headline asks, "The thinking man's Bentley?" Perhaps, if said man is doing his thinking after hitting the all-you-can-eat peyote buffet. Note the deftly-removed B-pillar and beautifully integrated extension between the front and rear doors, complete with a gap in the weatherstripping along the sills. Listen, we have no idea if this is some one-off novelty or something that's actually being considered. What we do know is that a Saabish-bodied 4-door luxo-vert with a Lexus-y nose and Mitsubishi Mirage rear end is exactly the kind of thing that makes following the Chinese auto industry so entertaining.
It's late, we know, but we're not a host short like last week! Chris, Sam, and Dan kick it about what's in the Autoblog Garage, the 2010 Camaro unveiling and other stuff that the Camaro overshadowed. What could possibly hold a candle to the Camaro officially rolling into that garage bay? Not much, but we touched on Honda's Prius clone fighter, as well as Malcolm Bricklin's legal action against Chery Motors after the breakup, but really, we spent a lot of time kicking the Camaro ball around, as it did happen to be the most excitement you could find without going racing. Hit us up at podcast at autoblog dot com with any questions/comments/suggestions, and thanks for listening!