DaimlerChrysler AG, the first foreign company to build vehicles in China, is in talks to sell cars made by Chery Automobile Co. in the U.S. and Europe, a person familiar with the negotiations said. Stuttgart, Germany-based DaimlerChrysler, maker of Jeep Cherokee sport-utility vehicles and Mercedes-Benz luxury sedans, may sell Chery’s subcompact cars, said Bloomberg. ``Smaller cars are gaining in popularity on higher fuel prices, but they have low profit margins,'' said Yasuhiro Matsumoto, an equities strategist at Shinsei Securities Co. in Tokyo. ``For DaimlerChrysler to make good use of a low-cost production base to support other markets makes sense.'' DaimlerChrysler and Chery are close to an agreement on selling cars in the U.S., Germany's Der Spiegel magazine reported yesterday, without saying where it obtained the information. DaimlerChrysler may later develop and produce cars together with Chery, Der Spiegel reported.