Chery Partners With Arizona Chipmaker for Hybrids, Fuel Technologies
May 06, 2008

Chinese automaker Chery Automobile Co. Ltd. is partnering with a Phoenix, Arizona-based high-tech company, Freescale Semiconductor, to build a research facility in China to develop hybrids and other fuel-efficiency technologies.

"Through joint research and development, Freescale and Chery intend to drive breakthroughs in next-generation automotive system designs," Paul Grimme, Freescale senior vice president, told the Arizona Republic.

Chery also has an affiliation with Chrysler that is moving forward. Freescale supplies, among other things, advanced automotive chips for the 2008 Chevrolet Tahoe and GMC Yukon 2-Mode hybrids. Chrysler is about to launch the same 2-Mode technology, cooperatively developed by General Motors, Daimler and Chrysler with BMW, in its 2009 Chrysler Aspen and Dodge Durango.

Wonder if the Freescale-Chery deal is giving GM, which spearheaded the innovative 2-Mode hybrid technology and brought together the parties to develop and commercialize it, heartburn. After all, GM sued Chery in China over copyright infringement, charging Chery with copying the Chevrolet Spark for its popular QQ subcompact. Not surprisingly, in the land of copying everything from cars to handbags, GM lost the suit.

The 2-Mode hybrid is costly and GM has admitted, despite the significantly higher price tag on its 2-Mode hybrid SUVs, it is not recouping the cost.

Freescale-Chery Deal

The newspaper reports the Chinese research lab will be partially staffed with engineers from Freescale’s facility in Chandler, Arizona, which designs and produces automotive chips that run everything from power windows to electronic turbochargers.

Chery and Freescale already have worked together on powertrain and engine control systems. Freescale technology is used in Chery's A5 BSG and ISG hybrids, which are official vehicles of the 2008 Beijing Olympic Games, the paper said. The two companies also plan to explore joint developments in body electronics, powertrain technology, and in-vehicle entertainment electronics.

Chrysler-Chery Deal Proceeds

Meantime, Chrysler Vice Chairman Thomas LaSorda recently confirmed the Detroit automaker's deal with Chery to build small cars is proceeding, but he gave no timeframe for introduction of Chery-built Chryslers.

LaSorda said the Chery-based Chryslers will first go on sale outside of Western Europe and countries covered by the North American Free Trade Agreement (NAFTA), which include the U.S., Canada and Mexico. He said Chrysler has an on-sale date in mind for those markets, but he’s not telling. After that, Chrysler will launch the Chery-based vehicle in NAFTA countries and Western Europe.

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