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's been so long since we've heard anything new regarding the Dodge Hornet concept from way back in 2006 that you could be forgiven for assuming it was dead on arrival. Not so, according to Thomas Hausch, ChryCo's veep for international purchasing, who says that the automaker is hard at work developing its Hornet model. Not that it's particularly shocking that Chrysler would be doing everything in its power to bring more small cars to market, considering that sales in that segment are so strong in the face of $4 per gallon gasoline.
It has long been assumed that the tie-up with Chinese automaker Chery would yield the first Chrysler compact, but remember that Chrysler recently made a deal with Nissan. In that arrangement, Nissan would get a version of the Dodge Ram in exchange for a Nissan-built small designed and developed by Chrysler. So perhaps the Hornet will actually come from Nissan. Whatever the case, the American automaker is in desperate need of a good compact vehicle as quickly as possible.
