DaimlerChrysler ramps up local production
By Li Fei (China Daily)
Updated: 2006-10-19 09:00
In a bid to slash costs and drive up sales, Renschler said the firm is
planning to boost local production.
In the commercial vehicle sector, the
German-US auto giant already has two joint ventures in China, Yangzhou Yaxing
Motor Coach Co Ltd, a coach maker in East China's Jiangsu Province, and a
venture with Fujian Motor Industry Group Co and Taiwan's China Motor Corp in
East China's Fujian Province.
The Fujian project, which is awaiting
approval, is expected to produce Mercedes-Benz vans such as the Viano, Sprinter
and Vito.
Once completed, the plant will have an annual production
capacity of 40,000 vans, according to Becker.
The Stuttgart-headquartered
automaker has signed a memorandum of understanding with Beiqi Foton Motor Co, an
affiliate of Beijing Automotive, with which it already has a joint venture to
produce Mercedes-Benz passenger cars.
It is widely believed that the
German-US automaker will use the Foton tie-up as a platform to produce
Mercedes-Benz heavy-duty trucks, according to industry analysts and
observers.
But Renschler did not elaborate on what form this co-operation
would take.
However, according to China's auto industry policy, one
foreign carmaker can only form two joint ventures with Chinese partners in one
auto segment, which means that DaimlerChrysler would not be able to establish
joint ventures with Foton.
It is reported that the carmaker is
considering selling its stake in the financially troubled Yangzhou Yaxing
venture in order to pave the way for its tie-up with Foton.
But the company
declined to confirm this.
Globally, the commercial vehicles business "has
become a stable profit pillar for DaimlerChrysler in recent years," said Board
Chairman Dieter Zetsche.
It occupies 20.4 per cent of the world's truck
and bus market and 17 per cent of the global coach market.
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