DaimlerChrysler is talking with several manufacturers in China about the possibility of building small according to company officials.
A Spokesperson for the Chrysler Group said the organization is interested in developing a small subcompact vehicle with help from a partner, but declined to confirm a report in a trade publication that the Chrysler Group was discussing the project with Chery Automotive Co. Ltd.
Chrysler was the first American company to enter the Chinese market when it signed an agreement to build Jeeps in Beijing. Beijing Jeep, a joint venture with a Chinese partner which has now expanding to building other vehicles, remains the core of DaimlerChrysler's operations in China, according to Dieter Zetsche, the company's chief executive officer.
Chrysler's operations in China, however, have been eclipsed by those of General Motors Corp., which now has the largest market share in China, and Ford Motor Co., which doubled its sales last year.