Chrysler announced on July 5 that it will sell a small, inexpensive car built by Chinese automaker Chery Automobile in South and Central America as early as next year and in the U.S. by 2009. The car is expected to cost about $10,000. But shortly after the Chinese government approved the deal between the two companies, Chery's president contradicted Chrysler, saying the car would sell for about $7,000 and go on sale in the U.S. by next year.
To buy a Chinese car here you pay a 2.5% tariff.
To buy an American car in China, the Chinese, whose auto workers earn $170 a month, pay a 25% tariff.
Just what the U.S. auto industry needs - Another 'fair-trade' partner.
