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This hatchback, or something like it, could be the car that saves Chrysler. Unveiled at the Shanghai Auto Show, the subcompact model is the latest by Chery Automobile, the Chinese company Chrysler hopes to partner with in Asia.

The car is small and cheap; exactly what analysts believe Chrysler needs to survive.

The small car is crucial to any automaker who wants to compete globally in the next ten years. Chrysler doesn't have it today, Chery offers it.

The American unit of the German-US auto group DaimlerChrysler is now up for sale, hurt by weak car sales and labor disputes. But despite the problems back home…

We are looking to, to expand Chrysler from being mainly an active producer, to really go much more on global market. China's gonna be one of the big ones obviously for us.

China's car market is already booming, only second to the US. Yet with average income still relatively low, small cars are popular here.

Chery specializes in these basic subcompact cars, and this one goes for 7000 dollars.

Unlike GM or Ford, Chrysler doesn't have a partner yet to produce a small car. And it hasn't been able to make one on its own, because of high labor costs. It hopes to sell a small car in countries like China, Russia and Mexico, as well as the US, possibly with Chery's help. Yet…

We have heard of Chrysler's troubles.

Analysts say Chrysler's pending sale is casting a shadow on its tentative deal with Chery. Some say Chery would benefit from Chrysler's know-how, but may try to branch out on its own.

We want Chery to become an international brand.

And possibly another competitor should Detroit's ailing carmaker.

Eunice Yoon, CNN, Shanghai.