Chrysler, China's Chery to seal vehicle alliance

By Kevin Krolicki

DETROIT, July 3 (Reuters) - Chrysler Group and China's Chery Automobile Co. will finalize a groundbreaking alliance on Wednesday in Beijing that could result in the first Chinese-made vehicles being exported to the U.S. market.

The Chinese government has cleared the deal, a spokesman for Chrysler said on Tuesday. A formal signing ceremony in Beijing featuring Chrysler Chief Executive Tom LaSorda is scheduled for Wednesday, he said.

"It's a finalization of the strategic framework we've been talking about," Chrysler spokesman Mike Aberlich told Reuters.

Chrysler, being sold to Cerberus Capital Management in a deal expected to close as soon as this month, had been negotiating with Chery to build a small car under a Chrysler brand for sale in the United States and elsewhere.

Closure of the deal had been delayed by the sale of Chrysler by its parent DaimlerChrysler AG DCXGn.DE.

LaSorda said in May that a newly independent Chrysler was seeking a broader alliance with Chery aimed at small cars and faster-growing emerging markets.

More than 90 percent of sales for Chrysler, which holds the Chrysler, Dodge and Jeep brands, are in North America and the No. 4 U.S. automaker has targeted growth in Europe and Asia as a key sales priority.