Chrysler has announced a new deal that will see it focusing more on the smaller, fuel efficient vehicle market.

The company has sealed a deal with Chinese automaker, Chery Automobile, to become the first manufacturer to sell Chinese-made vehicles in the US market.

However, as demand for SUVs and trucks continues to diminish in the US automobile market, Chery will be introducing smaller, more fuel efficient cars.

Chrysler is hopeful that the agreement will enable it to compete directly with the likes of Toyota's Yaris, as fuel efficiency becomes increasingly important to the US motorist.

China is now the world's second largest manufacturer of vehicles in the world, behind the US, and this agreement sees Chrysler link up with one of the most successful Chinese automakers.

Sources:

Chrysler, Chery Sign Vehicle Export Deal, 04/07/07
http://www.washingtonpost.com/wp-dyn/content/article/2007/07/04/AR2007070400195.html

Chrysler picks Chery to build cars in China, 04/07/07
http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/07/04/cncars104.xml

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