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China's Chery Automobile Co. Ltd. and US carmaker Chrysler Group will jointly create a new car line to be marketed and sold under its own marque, says the head of Chery Automobile.

The new line would be manufactured by Chery and sold through a joint venture to be set up by the two companies, said Yin Tongyao, chairman of Chery Automobile, in an interview with Xinhua.

The two carmakers would also build a manufacturing base on the Chinese mainland to produce cars for export under a cooperation agreement, Yin said.

Under the agreement, some of Chery's existing models would be sold under Chrysler Group brands in North America and Europe after modification.

"As a young and fast-growing enterprise, Chery needs to learn more from leading automakers such as Chrysler Group," said Yin.

The cooperation would help enhance Chery's research capabilities and push its development in a more rapid and sound way, said Yin.

It would not affect the free entry of all Chery's own brands into the world market, he added.

Established in 1997, Chery is one of China's ten biggest carmakers and one of the few Chinese companies that successfully produce their own models instead of manufacturing foreign brands under a licence.

In the first nine months last year, Chery sold 50,000 cars overseas.

(Xinhua News Agency January 6, 2007)