One billion euro China injection as Daimler looks to salvage Asia strategy
One billion euro China injection as Daimler looks to salvage Asia strategy
Agence France-Presse, Beijing
U.S.-German auto group DaimlerChrysler, looking to salvage its
Asian strategy after setbacks in South Korea and Japan, said
Wednesday it will pour more than one billion euros into China
over the next few years.
The car giant will also aim to double capacity of its jeeps
and sports utility vehicles this year as it looks to cash in on
the world's fastest growing auto market.
"We are going to invest more than one billion euro in the next
couple of years in passenger cars, jeeps and commercial
vehicles," said Roman Fischer, chairman and chief executive
officer of DaimlerChrysler China Ltd.
While he gave no details of the investment plans, the company
in May received the green light from the Chinese authorities to
proceed with a joint venture with Beijing Automotive Industry
Holding Co. (BAIC).
The two sides have indicated they hope to set up a one billion
euro (US$1.2-billion) joint manufacturing facility to build
Mercedes E-class and C-class models.
DaimlerChrysler's drive into the Chinese market follows an
aggressive acceleration of U.S.-based General Motors plans for
the communist country.
The world's number one automaker on Monday announced it was
investing $3 billion in the Chinese market in the next three
years and doubling assembly capacity.
Fischer said his company expects to sell more than 40,000 of
its jeeps and sport utility vehicles this year through its
Beijing Jeep joint venture operations, compared to 20,000 last
year.
Beijing Jeep sold just 9,000 units in 2002.
Many of the world's top automakers are in Beijing for the
country's flagship motor show, AutoChina, which officially opens
on Thursday.
As well as DaimlerChrysler and GM, Mazda and Volvo Cars have
this week flagged sales drives in a country where rising urban
household incomes have created huge demand for cars.
DaimlerChrysler is looking to tap into this potential to help
it get back on track after two stunning setbacks in the past few
weeks in Asia, culminating in the severing of its fraught
alliance with South Korean car maker Hyundai.
Coming only three weeks after DaimlerChrysler pulled the plug
on any further financing for its loss-making Japanese partner
Mitsubishi Motors, it left the group bloodied and bruised in its
fight to remain one of the world's top car makers.