Thursday, September 15, 2005

DCX to build minivans in China

Agreement links up automaker with its second local partner in fast-growing market.

By Christine Tierney / The Detroit News

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In a bid to pick up its sluggish sales pace in China, DaimlerChrysler AG's Chrysler Group will start making minivans next year in the southern region of Fujian.

Chrysler CEO Tom LaSorda was in the Chinese city of Fuzhou Thursday to announce the agreement, which links Chrysler up with a second local partner in the fast-growing market.

Chrysler has a longstanding partnership to build Jeeps with Beijing Automotive Industry Corp. The Beijing Jeep joint venture was the first established between a foreign automaker and a Chinese company, but Chrysler has fallen far behind more aggressive newcomers in the fast-growing Chinese market.

Its sales this year total 3,750 units, compared with 220,774 sold by Shanghai General Motors Corp. and 26,223 by Ford, according to consulting firm Automotive Resources Asia.

Chrysler's new venture partner, South East Motors, is half-owned by Taiwan's South China Motor and half by China's Fujian Motor Industry Group.

"Our hope is to launch this project in late 2006 for the mainland China market," said William Russo, vice president for DaimlerChrysler China Ltd., based in Beijing.

Chrysler already had dealings with South China Motor, which it licensed to build Chrysler minivans in Taiwan for the Taiwanese market. And DaimlerChrysler has a prior venture partnership with South East Motors to build Mercedes-Benz Sprinter, Vito and Viano vans for the Chinese market.