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DaimlerChrysler CEO confirms China joint venture

(Agencies)
Updated: 2006-11-23 11:14

The CEO of DaimlerChrysler AG confirmed during a trip to Beijing that a possible joint venture is being discussed with Chinese automakers that would make cars for the Dodge brand for sale in the United States.

Dieter Zetsche was asked during a visit prior to the Beijing Auto Show about the status of talks with Chinese automakers to beef up Chrysler Group's model lineup and offer smaller, more fuel-efficient cars for the Dodge brand as demand for SUVs and larger models wanes.

He said the company was in talks with several possible partners about producing smaller, more fuel-efficient cars as demand for SUVs and larger models decline.

Zetsche was asked if Chery was the preferred partner, and he replied: "It's fair to say."

Zetsche said he was optimistic that a decision would be reached in the "not so far future," according to DaimlerChrysler. However, he added that he could provide no timetable "because you can only talk about your own position. It takes two to tango."

China has the world's second-largest car market after the United States, with 7 million new vehicle sales per year.

In September, DaimlerChrysler formally opened its first factory to make Mercedes-Benz and Chrysler sedans in China -- part of the company's 1.9 billion U.S. dollars investment in China.

The Beijing factory, which produces Mercedes E-Class and Chrysler 300C sedans, as well as Mitsubishi's Outlander sport utility vehicles, is a joint venture with a Chinese partner, state-owned Beijing Automotive Industries Corp.