New Chrysler to incorporate China business

SHANGHAI - June 11, 2009: A spokeswoman for Chrysler's China unit said its China business is operating normally and will be incorporated into the new Chrysler Group LLC, based on the agreement with Fiat, Shanghai Daily reported today.

Chrysler LLC said it was not consider changing its development plan for China until the ink had dried on the Fiat deal. Chrysler LLC yesterday completed its sales of strongest assets to a new group headed by Italian auto giant Fiat, allowing for the formation of a new automaker - Chrysler Group LLC.

Chrysler sells SUVs (sport-utility vehicles), MPVs (multi-purpose vehicles) and passenger cars under its Jeep, Dodge and Chrysler brands in China. The U.S. automaker's short-term plan in China focuses on imports, especially imports of the Jeep-brand vehicles.

John Kett, vice president of Chrysler LLC and chief executive officer of Chrysler Asia Pacific, said earlier that the company's capability to move forward in China has been hampered by the ongoing Fiat deal.

The new Chrysler group will combine the good assets from the bankrupt Chrysler and technology from Fiat, the company announced yesterday.