Chrysler to move some of its staff to Asia

Chrysler to move some of its staff to Asia

WASHINGTON (AFP): Chrysler Corp. said Friday it would transfer some employees from its U.S. headquarters to Singapore and Tokyo as a "first step" toward further expansion of the automaker into Asia.

But company spokesman Mike Aberlich declined to characterize the move as a "major expansion" into Asia, a phrase used by the Wall Street Journal.

Aberlich said one-third of the Chrysler Asia-Pacific employees at its Auburn Hills, Michigan, headquarters would be transferred to the region, which would mark "a first step toward further expansion."

The move "will allow us to get closer to the market and better size opportunities for expansion," Aberlich said.

The transfers should begin at mid-year and be complete by the end of the year, Aberlich said.

The Journal said Chrysler is planning a major expansion into Asia, which eventually will include facilities to assemble light vehicles and produce auto parts.

The report said Chrysler will also seek partners to establish facilities in Asia that would assemble prefabricated autos and light trucks.

Chrysler, the number three U.S. automaker, was the first non- Asian group to establish an Asian joint venture in the region. In 1983 it opened a factory near Beijing to build Jeeps, Beijing Jeep Corp.

It has since been overtaken by U.S. competitors, especially General Motors, but also European competitors.

"Every country is different," Aberlich said. "You have to be cautious when you consider overprotectionism in Korea, or Indonesia's national car program, for instance."

Three years ago Chrysler abandoned a project to build minivans in China after Beijing demanded the right to license technology secrets.

Chrysler is instead focusing on the Jeep, its "most global brand," Aberlich said.

The company already owns 30 percent of an operation in Thailand that produces Jeeps. In Indonesia and Malaysia Jeeps are built by local contractors.

Chrysler has invested some US$200 million in 1996 alone to assemble Jeeps in Asia, Aberlich said.

The Singapore office will be in charge of South Asia operations, and Tokyo office would handle northern Asia affairs, Aberlich said.