DaimlerChrysler close to deal with Chinese auto maker?
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Manufacturing News, Source : The Manufacturer US
Published : 29 Sep 2006 17:22
DaimlerChrysler, the world's fifth-largest car maker, is negotiating with China's Chery Automobile to manufacture small cars for sale in the US and elsewhere and may be close to finalizing a deal, sources told Reuters on Friday.
"The two sides have explored various ways to make subcompact cars together and are now in advanced negotiations," a source said.
One option under discussion is for Chery to provide models and make revisions at the direction of DaimlerChrysler, with the cars being made in China, the source said.
Most of the funding for the project would be provided by DaimlerChrysler, the source said, and cars bound for the US market would carry the Chrysler brand. At this time Chrysler has no model offerings in the small-car segment, one that is growing rpaidly in this country and is already significant in Europe and other markets.
Another source in the industry confirmed that the American auto giant and Chery were in detailed discussions that might eventually lead to a joint venture between the two firms, according to Reuters.
Both sources said a decision was expected to be finalized within a few weeks. DaimlerChrysler and Chery declined to comment.
Such a tie-up with DaimlerChrysler could expedite Chery's entry into the US market, the world's largest, and boost the company's global credibility, industry analysts believe.
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