DaimlerChrysler may produce VW transporter

FRANKFURT, Jan 21, 2003; Reuters reports that carmaker DaimlerChrysler AG is in talks to manufacture the new light commercial vehicle of its German rival Volkswagen AG, a paper reported on Tuesday.

DaimlerChrysler could assemble up to 50,000 units of Volkswagen's new LT3 vehicle per year in its plant in Ludwigsfelde, Germany, the Frankfurter Allgemeine Zeitung said in an article released ahead of publication on Wednesday, citing industry sources.

A Volkswagen spokesman said the firms had talked about joint production of the vehicles but said there was no decision yet.

The firms agreed last year to jointly develop the next models of their light commercial vehicles, DaimlerChrysler's Sprinter model and Volkswagen's LT3 model, continuing a cooperation that started in 1996.