Chrysler Group President and CEO Tom LaSorda joined Chery Automobile Co. Chairman and President Yin Tongyue today to finalize the highly anticipated cooperative agreement between the two automakers.

Chinese governmental authorities from the State Development and Reform Commission officially approved the agreement and marked the occasion by hosting a first-of-its-kind signing event. The ceremony was held at Beijing's Diaoyutai State Guesthouse.

Under the agreement, Chery, based in Wuhu, Anhui Province, China and Chrysler, based in Auburn Hills, Michigan, USA will work together to develop, manufacture and distribute Chery-made small and sub-compact cars in North America, Europe and other major automotive markets under the Chrysler Group brands.

"This is a win-win for both of our companies, and I am confident this will be a successful relationship," said Yin. "Chrysler brands are very well known in the U.S. and Europe. We're prepared to work with Chrysler Group to expand their small-vehicle lineup with competitive products and accelerate both our companies' international competitiveness."

Chrysler will identify several small-car models now being developed by Chery in China and work collaboratively to make any necessary branding and regulatory modifications prior to their entry into other markets. Both companies also will jointly develop new globally competitive products based on future Chery small-car platforms.

Strategic growth in international markets - while defending market share in North America - is an important part of Chrysler Group's Recovery and Transformation Plan.

"This is the start of a very long relationship between Chrysler and Chery," said LaSorda. "Chery's participation in this agreement and their focus on small and sub-compact cars will have a nearly immediate effect on Chrysler Group's offerings in the small-vehicle segments. This strategic partnership is part of a new business model that is allowing us to introduce all-new products more quickly, with less capital spending."

Today's announcement is not the first milestone for Chrysler in China. Chrysler's relationship with China began 25 years ago when it formed Beijing Jeep Corp., the first international automotive joint venture in the country.

The DaimlerChrysler Supervisory Board approved the framework for the Agreement earlier this year.

Profile of Chery Automobile Co., Ltd.

Since the foundation of Chery in 1997, Chery has always been pursuing independent innovation, after ten years development, Chery now is endowed with systematic new products research and development, manufacture and sales. Its products have been sold to more than 50 countries and regions, and it has become the pacesetter of Chinese independent auto brands with its average annual growing rate at 169%.

Profile of Chrysler Group

The Chrysler Group is the Auburn, Hills, Michigan-based unit of DaimlerChrysler AG. Employing more than 84,000 people worldwide, Chrysler Group designs, manufactures, markets, distributes and - through its Chrysler, Jeep and Dodge dealers - sells cars, trucks, minivans and sport-utility vehicles to customers in more than 125 countries worldwide. Its brands feature some of the world's most recognizable vehicles, including the Dodge Viper, Jeep Wrangler, Chrysler PT Cruiser and Chrysler 300C. In 2006, Chrysler Group sold 2.8 million vehicles globally.