Chrysler to drop out of Daimler's Beijing venture

Shanghai, August 25, 2008 - Daimler and Chrysler have reached an agreement about their parting issue in Beijing Benz-DaimlerChrysler (BBDC), and Chrysler's personnel are gradually withdrawing from BBDC, reported First Financial Daily today. The three-way cooperation will be coming to later this year with Chrysler's dropping out.

Sources said that German car-maker Daimler AG has recently contacted Beijing Automotive Industry Holding Co. (Beijing Auto) to talk about the impact the split of Daimler and Chrysler will have on BBDC -- their joint venture with Beijing Auto, and meanwhile to explore a new means of cooperation with Beijing Benz. Reportedly, Daimler will invest an additional $1 billion in Beijing Benz as compensation for the withdrawal of Chrsyler.

Daimler and Chrsyler have agreed on their disbanding in their Beijing venture, where the Chrysler 300C model will be no more produced. Only four Chrysler technicians are now staying behind in the Beijing Benz facility for supervising the production of Chrysler's final batches of 300C and Sebring models. Most U.S technicians of Chrysler have withdrawn from BBCD.

Want more information? Search the web!

Search The Auto Channel!

Search 1,043,125 pages