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Saturday, June 03, 2006

Chrysler wants to be localized in China

Written by: S.M.Mehdi Hassan
Daimler Chrysler has decided to increase its input in its China products by eight fold. The auto giant is now moving toward localizing its products in China. According to Till Becker, CEO, Daimler Chrysler, Northeast Asian region, the company by 2008, will increase its annual expenditure from 100 million to 800 million. Becker also said that the auto parts bought from Chinese companies will be used in the company’s products. He also said that Daimler Chrysler has a long term business goal in China and he expected more auto parts producers would join with them.
At present, Daimler Chrysler and Beijing Automotive Industry Shareholding Company Limited have a joint venture plant in China, Beijing Benz-Daimler Chrysler Automotive Corporation. Both the companies have 50-50 share in this company. Both organizations have invested 600 million dollars and the company’s registered capital is a total of 400 million. It produces jeeps, Mercedes- Benz Sedans, and military vehicles. In the first four months 2470 units of Mecedes—Benz Sedans were sold in China. Word spread out that China would suspend the production of Benz but an official rejected the speculation.

Useful Links:
http://english.people.com.cn/200606/02/eng20060602_270440.html

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