Chrysler, Asian firms tie up

Chrysler, Asian firms tie up

LOS ANGELES : Chrysler said on Thursday it plans on jointly operating an automobile manufacturing plant in North America with automakers from Japan and South Korea.

The boss of the U.S. division of DaimlerChrysler AG, Dieter Zetsche, said the new factory to build a four-cylinder vehicle will include management from Mitsubishi Motors Corp. and Hyundai Motor Co., its two partners in the manufacturing of the auto.

The vehicle is designed as a cost effective family car and will be mainly built in the United States at a location that has not been announced.

The motors for the automobile are planned to be produced in Japan and South Korea. The three companies have agreed to jointly manage the American plant, Zetsche said.

In May, Daimler Chrysler, Hyundai, and Mitsubishi established a joint venture Global Engine Alliance to manufacture a new line of vehicles.

Hyundai is scheduled to begin producing the car's motors in 2004 in South Korea and assembly on the final product is set to begin in 2005 in the United States, Bloomberg news reported. --DPA