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.

There has been a lot of talk recently about whether Chrysler has the right products in the pipeline to compete in this brutally competitive automotive market. Company chairman Jim Press told a group of reporters in California that help is on the way in the form of seven new products coming in calendar year 2010. Chrysler top procurement officer John Campi stated recently that the number could be as high as nine, but we suspect the number disparity could be a result of Campi counting vehicle variations as separate models. Neither Campi or Press gave any details of upcoming models, but analysts think they know which products are coming our way. Erich Merkle of Crowe Chizek and Co. sees only five vehicles arriving in 2010, including the next generation 300, Durango, Grand Cherokee, Charger, and the Nissan-based Dodge Hornet (or other small car). The Pentastar may also be counting separately hybrid versions of some of the models, but there is also a chance there's an all-new model or two based on collaborations Chrysler has with other automakers that analysts don't know about. Press and Campi aren't the only executives talking about future product, either. Chrysler top dog Bob Nardelli said last month that a new fuel efficient vehicle may coming as soon as next year as well, and we suspect that model could be the Hornet. Press stressed that it took years for Chrysler to end up where it is today, and that it will take at least three years to pull the privately owned company out of the abyss. It's good to hear Chrysler is still alive an kicking, and we're looking forward to seeing what the Auburn Hills, MI automaker has up its sleeve.


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.

