Basically, all that the private equity firm was interested in was the dealer network. Chrysler will not be manufacturing cars in 5-10 years. It will simply be rebadging them.

Chrysler reportedly near import deal with Chinese automaker
greement to import Chinese subcompacts reportedly close to final approval; news comes as concerns linger over the safety of Chinese-made goods.
July 3 2007: 8:21 AM EDT

NEW YORK (CNNMoney.com) — Chrysler Group is set to give final approval to a deal that would have a Chinese automaker build small cars for it to sell in the United States and Western Europe, according to a newspaper report Tuesday.

The deal between Chrysler and China’s Chery Motor Co., which comes in the wake of growing concern among U.S. consumers over the safety of Chinese-made goods, was in question after DaimlerChrysler agreed to sell a majority stake in Chrysler to private-equity firm Cerberus Management.

But the Detroit News reports that Chrysler CEO Tom LaSorda is in China finalizing the agreement.

The paper said the deal will be announced in Beijing on Wednesday, which, given the difference in times zones, is just before the Independence Day holiday here.

Chrysler had first confirmed that it was holding talks with Chery on the Friday before the New Year’s holiday here, another time that minimized news coverage.

….