DaimlerChrysler Puts Russian Mercedes Plant On Hold

Posted by www.eMercedesBenz.com on November 3, 2005 at 6:00 PM CST

DaimlerChrysler reported yesterday that it has halted plans to open a  
$96 million Mercedes plant in Russia, after an agreement between them  
and the Russian government could not be reached.  According to a  
DaimlerChrysler spokesman, "Conditions for local assembly of Mercedes- 
Benz cars in Russia are not in place at the moment."

Sources close to the matter claim a dispute between Russia's industry  
ministry and economy ministry is to blame. Although the industry  
ministry welcomed DaimlerChrysler's plans for the new plant, the  
economy ministry preferred to protect Russian automakers from outside  
competition.

Despite the disagreement, DaimlerChrysler added that it is willing to  
re-open the negotiation talks, once certain unspecified issues have  
been resolved.

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