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Daimler-Chrysler made China strategy with SM

Shingo From GAS| February 02 , 2007

"Chrysler and Southeast-Motor are about to bring into action, the MPV will be produced in the end of 2007 in Southeast-Motor," the President & CEO of Chrysler said in an interview.

Suspended for more than 3 years, the project of MPV production by Daimler-Chrysler and Southeast Motor made its start-up these days. Meanwhile, another program which has been suspended for 2 years was also activated. The DCVC financed and established together by Daimler-Chrysler, Southeast-Motor and Taiwan China-Motor has got approved by Ministry of Commerce of the People's Republic of China.

Nov 14th, 2005, Daimler-Chrysler sold its 12.42% stock holding of Mitsubishi, which meant a termination of the planed direct profit from stock holding of Mitsubishi. Therefore, all the programs between Daimler-Chrysler and Mitsubishi were suspended, including the MPV OEM project (Mitsubishi holds 25% shares of Southeast Motor) and the joint venture program of light weight vehicle (Mitsubishi holds 10% shares Taiwan China-Motor).

"To enlarge its market, Daimler-Chrysler must accelerate its expansion in China." a director of Daimler-Chrysler (China) said. It is said that besides the MPV OEM project, the two parties are planning a joint venture--Southeast-Chrysler Sales Company, with each holding 50 % shares.

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