Summary from Automotive Digest:

Situation

• Chrysler Group to import small Dodge car from China’s Chery automaker, beginning in 2008
• Deal confirmed by DC, 1st such pact w/ Chinese automaker by any major Western producer
• Tentatively named Dodge Hornet, ‘B-car’ subcompact will be smaller than Dodge Caliber
• Chrysler turns to China because cost of building domestic B-car all but wipes out profit
• Deal pressures UAW on carmaking costs
• Holding prospect of small SUVs, compacts also farmed out to China

Significance

• Chery already exports cars to about 20 countries in SE Asia, Africa, Middle East
• Chrysler CEO Tom LaSorda praises Chery’s manufacturing record
• Says it’s “good fit” w/ domestic automaker’s engineering, design staffs
• Chery deal still to be ratified by DC supervisory board, UAW chief Ron Gettelfinger is member
• Chery-Chrysler liaison began after Chinese automaker broke off agreement w/ US dealer group working w/ Malcolm Bricklin

Detroit Freep news article has more