BizAims

The American automobile manufacturer, Chrysler LLC, announced that it was able to achieve an agreement with a Chinese manufacturer, Great Wall Motor Co, to work on sharing technology, component parts, as well as distribution. The agreement comes after the company was in search for foreign partners, which would help Chrysler LLC drive its business, after sales in the United States registered a significant decrease.

Today Chrysler is the smallest giant from the trio of major car makers in the United States. It is worth mentioning that currently the company aims towards expansion on the Chinese market and it already managed to make a deal with China's Chery Automobile Co. to manufacture low-cost cars for sale under Chrysler's Dodge brand.

In its statement, the company's representatives said that the new deal between Chrysler and Great Wall will focus mainly on using each other's distribution networks, as well as component parts and technology potential.

Shawn Morgan, the spokeswoman for the American car maker, said that the agreement "represents part of Chrysler's ongoing efforts to explore opportunities to expand the company's involvement in the development of China's auto industry, as well as growing Chrysler's global business through the right partnerships." She said that the two parties are currently not providing any more details regarding the agreement.

As the demand for the American vehicles registers a downfall, U.S. car makers look forward to expand on the Chinese market, which, they hope, will improve the situation. In response, Chinese foreign partners are anxious about making deals with foreigners as they look forward to improve their technological and marketing abilities.

Chrysler's new partner, Great Wall, has its headquarters in Baoding, a city located west of the Chinese capital, Beijing. The company is famous for producing SUVs and trucks, but its main goal is expansion on the market of cars.

According to Chrysler's representatives, the Auburn Hills-based company registered a 19-percent decrease in sales over the first 5 months of 2008 in comparison with the same time span last year.