The Chinese automaker Chery is really active lately. In the end of last year Chery was one of the main candidates to Volvo purchase when Ford decided to give it up. At the same time Chery was negotiating with Chrysler. This was a good opportunity for the American manufacturer to bring cheap small cars to the country and compete with many other companies in the highly demanded minicars.

Car sales are down almost everywhere and Chery thought about joining Fiat to expand the territory and improve sales. However, the latest news tells about problems in their union as well.

In the beginning of 2008 two companies have announced about a joined venture project in which they would build passenger vehicles in China assembled with 50/50 Italian and Chinese parts. This was a great opportunity for Fiat to improve sales in China after a sad partnership with Nanjing Automobile.

However, Chery chairman, Yin Tongyao, made a statement a few days ago that they want to stop the union, because “foreign automakers are affected by the financial crisis and any additional investment will be difficult for them at a time like this”. Although the vehicles are not going to be produced this year as it was planned, Mr. Tongyao, notes, “We have not shelved the project”.