DaimlerChrysler gets greenlight for China venture

2nd November 2004, Comments 0 comments

2 November 2004 , STUTTGART - German-US auto giant DaimlerChrysler has been given the go-ahead to produce cars and commercial vehicles in China, the company said on Tuesday. The Chinese State Council on Tuesday approved plans by the Germany-based company to produce Mercedes cars and commercial vehicles in joint venture projects, DaimlerChrysler officials said. DaimlerChrysler chief Juergen Schrempp said the agreement represented "a milestone" in the firm's business activities in China and "underpinned a so

2 November 2004

STUTTGART - German-US auto giant DaimlerChrysler has been given the go-ahead to produce cars and commercial vehicles in China, the company said on Tuesday.

The Chinese State Council on Tuesday approved plans by the Germany-based company to produce Mercedes cars and commercial vehicles in joint venture projects, DaimlerChrysler officials said.

DaimlerChrysler chief Juergen Schrempp said the agreement represented "a milestone" in the firm's business activities in China and "underpinned a solid presence in Asia".

Officials said China's approval paved the way for the joint venture plans to be finalised. It is thought production of Mercedes-Benz cars could begin by the middle of next year.

DaimlerChrysler and its Chinese partners, Beijing Automotive Industry Holding Company (BAIC), China Motor Corporation and Fujian Motor Industry Group, want to invest EUR 1.2 billion in the ventures in the medium term.

In the planned car division partnership with BAIC, DaimlerChrysler intends to produce Mercedes C and E class models, with an annual production capacity of up to 25,000 cars. A new factory is planned on the outskirts of Beijing.

Mercedes group chief Eckhard Cordes said Tuesday's approval was a significant step in the company's long-term plans to expand in China.

In the commercial vehicles joint venture it is planned to produce about 40,000 Mercedes Sprinter transporters and the new-generation Viano/Vito vans at a new plant at Fuzhou City in Fujian province from 2006.

The joint venture brings together DaimlerChrysler, China Motor Corporation, and the Fujian Motor Industry Group.

The projects will employ around 15,000 workers. The joint venture partners will set up their own training centres to ensure product quality and aim to build up a component feeder industry for the production sites.

DPA

Subject: German news
 

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