"NEVER MIND" DC Will Use Mercedes Parts in Chryslers

In spite of repeated denials, Bloomberg News reported that DaimlerChrysler AG's Chrysler cars and trucks will use a Mercedes-Benz vehicle-stability system, in what the German automaker called the most extensive parts sharing between the units as it tries to improve earnings.

Richard Schaum, Auburn Hills-based Chrysler Group's executive vice president of vehicle development, wouldn't say when or on what vehicles the third-largest U.S. automaker will use the system.

The LX cars that replace the Chrysler 300M and Concorde and Dodge Intrepid in 2004 and the later replacement for the Jeep Grand Cherokee sport-utility vehicle are likely candidates, analysts said.

Using Mercedes systems on Chryslers increases the volume of the components and lowers the company's parts cost, Schaum said. Vehicle-development costs contributed to Chrysler losses this year, and the U.S.-based unit wants to use more Mercedes parts to reduce engineering expenses.

Chrysler's turnaround plan calls for breaking even next year and earning a profit in 2003.