DaimlerChrysler last week became the first major automaker to confirm plans to sell Chinese-built cars in the U.S. after signing a letter of intent with China's Chery Automobile Co.
Under the preliminary agreement, and contingent upon Supervisory Board approval, Chery is expected to produce small vehicles for the Chrysler Group that will go on sale in North America, and possibly Western Europe and other markets, within a couple of years.
Chery is a state-owned carmaker based in China's eastern Anhui province.
While B-segment cars only account for about 3 percent of sales in the United States, analysts say it is important for automakers to have an entry-level car to attract young buyers.
The Chrysler Group has shown concept subcompacts, such as the Dodge Hornet, which is smaller than the Caliber, but does not have a car of that size on the market.