DaimlerChrysler: Mercedes Assembled In China ?

NEW YORK, Jan 9, 2003; Reuters reported that DaimlerChrysler AG has begun talks with Chinese officials to begin assembling Mercedes C-Class and E-Class luxury cars in a joint venture with a local partner, the Wall Street Journal said on Thursday.

Citing people familiar with the matter, the newspaper said the firm expects to have an agreement in place later this year and hopes to set up a plant where Chinese workers would build the vehicles from kits shipped from Germany. It eventually expects to assemble 20,000 to 30,000 Mercedes cars a year in China, they said.

The report said that within the next few weeks DaimlerChrysler plans to name the head of its Australian operations, Roman Fischer in a new senior post, charged with expanding the activities of its Mercedes-Benz, Chrysler and Jeep brands in China, and coordinating strategy with alliance partner Mitsubishi Motors Corp.

In recent months other big vehicle makers have set plans to invest millions of dollars in China.

U.S. company officials were not immediately available for comment early Thursday morning.