Executives at DaimlerChrysler AG's Chrysler, which is struggling to pare costs, say the agreement to assemble a series of small, inexpensive cars for export under the Dodge brand name is likely to serve as a template as the company looks to roll out new models quickly, inexpensively and with less capital investment.

The first models could be on sale in Latin America and other developing markets within a year, executives said. The company aims to sell them in the U.S. and Western Europe by the end of 2009.

"We will combine Chrysler's research and technology and global reach with Chery's lean manufacturing," said Chrysler Chief Executive Tom LaSorda.

Chrysler is moving ahead with its Chery tie-up as questions mount around the world about the safety of some Chinese exports.

Mr. LaSorda said he doesn't "see any issues" with Chery's "safety and quality. This is a very good company," he said.

The Chery deal was approved by the board of DaimlerChrysler before the company decided to sell 80.1% of Chrysler to private-equity firm Cerberus Capital Management LLC.

The first Chinese-made car that Chrysler plans to sell under its Dodge brand will be a modified version of a Chery four-door hatchback, known as the A1, Mr. LaSorda said. Chery started selling the car in China this year with a retail price ranging from about $7,000 to $7,900.

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