Just two weeks after starting his new role as President and CEO of the
Chrysler Group, Tom LaSorda reviewed the Company’s plans in China and Taiwan
this week unveiling three product programs representing an investment of $350
million. The Chrysler Group intends to produce Minivans in Taipei and Fuzhou,
and the award-winning Chrysler 300C in Beijing all for local markets.
When combined with recently announced projects of DaimlerChrysler, the
investment from the company and it's partner for the region now totals $1.5
billion.
But LaSorda's trip focused on the Chrysler Group strategy in the region.
“Chrysler vehicles are known around the world for their combination of
eye-catching design and outstanding value,” said LaSorda. “From fashion to
architecture to cars, take a look at urban China today and it’s obvious that
successfully combining bold design and superior value is a winning formula.
Following the success we’ve had growing our business in the hyper-competitive
North American and European markets, Chrysler is embarking on a new product
offensive for Northeast Asia, led by our new flagship, the Chrysler 300C, along
with the world’s most popular minivan, and, of course, the venerable Jeep.”
“Without a doubt, the automotive industry’s greatest potential for growth in the
next ten years is in Northeast Asia,” said Dr. Rüdiger Grube, Member of the
Board of DaimlerChrysler AG, responsible for Corporate Development and China
Operations.
"And DaimlerChrysler intends to be there with a major presence. The Chrysler
Group’s plan to add minivan and Chrysler 300C production to the region further
complements DaimlerChrysler’s overall strategy to expand production and sales of
passenger cars, commercial vehicles as well as vehicle financing".
LaSorda started his Northeast Asia trip on September 14 in Taiwan, reviewing the
Company’s previously announced plans to license minivan production with China
Motor Corporation (CMC), and create a joint venture between DaimlerChrysler
Taiwan and CMC to manage sales and distribution of Chrysler Group vehicles, both
for the local market.
The following day in Fuzhou, on mainland China’s southeast coast, he announced
the company’s intention to license Southeast Motors (SEM) to produce Chrysler
minivans for the mainland Chinese market. SEM is joint venture between CMC and
Fujian Motor Industry Group (FJMG). DaimlerChrysler has established a separate
joint venture called DaimlerChrysler Vans (China) Ltd. (DCVC) with both FJMG and
CMC to produce Mercedes-Benz Sprinter and Viano Multi-Purpose Vehicles at a new
facility, also in Fuzhou. Chrysler minivan production will take place at SEM’s
existing facility.
During the final stop of his trip in Beijing on September 16, LaSorda announced
the intention to build the Chrysler 300C at the new joint venture, BeijingBenz-DaimlerChrysler
Automotive Ltd. (BBDCA), for the Chinese market. During the press conference,
LaSorda unveiled a giant moon cake, reminiscent of the moon cakes traditionally
given for the Chinese Mid-Autumn Festival, which takes place during the full
moon on September 18. The moon cake was lifted to dramatically reveal the new
Chrysler 300C, the Company’s Mid-Autumn Festival “gift” to the new joint
venture.
BBDCA has been operational since its business license was issued last month. The
50:50 joint venture between DaimlerChrysler and BAIC is an expansion of Beijing
Jeep Corporation, which produces and sells Jeep and Mitsubishi SUVs. BBDCA will
also produce Mercedes-Benz E- and C-Class sedans at a new facility in the
Beijing Development Area in the southeast part of the city. The former BJC will
relocate from its current site downtown to a new facility adjacent to the new
Mercedes-Benz production hall. The Chrysler 300C will be built in a new Chrysler
production hall, starting in late 2006 at the new location.
The additional $350 million investment brings DaimlerChrysler and its partners’
total investment in China to $1.5 billion, which includes:
In Beijing, with BAIC, production of Chrysler 300C, Mercedes-Benz E- and
C-Class at the new joint venture (BBDCA); relocation of the “former BJC” to the
new site, which includes production of Jeep and MMC vehicles; and with Beiqi
Foton (in which BAIC has majority ownership), realizing production of medium and
heavy duty trucks;
In Fuzhou, with CMC and FJMG, licensed Chrysler minivan production at SEM,
and production of Mercedes-Benz MPVs at a new joint venture (DCVC); and
In Taiwan, with CMC, licensed Chrysler minivan production, and creation
of a new joint venture for sales and distribution of Chrysler Group products
(Chrysler Group Sales Taiwan Ltd.).
The Chrysler Group, which produces and markets Chrysler, Jeep and Dodge brand
vehicles, increased worldwide annual sales in August, marking its seventeenth
consecutive month of year-over-year sales gains. The company is undergoing its
most ambitious product offensive, launching 25 new vehicles in three years. Its
product lineup includes: the award winning Chrysler 300C, industry-leading
Chrysler Voyager minivans with Stow 'n Go seating, and the venerable Jeep Grand
Cherokee, Jeep Commander and Jeep Wrangler, among others. In North America the
Chrysler Group also sells Dodge branded vehicles, including the Dodge Charger,
Dodge Ram Truck, and of course, the Dodge Viper, among others. Dodge vehicles
will soon be available in Europe and additional international markets.
The Chrysler Group is a unit of DaimlerChrysler Group, one of the world’s
leading transportation services companies, which builds and markets passenger
cars and commercial vehicles with the brands: Mercedes-Benz, Maybach, smart,
Chrysler Jeep, Dodge, Freightliner, Setra, Sterling, Thomas Built and American
LaFrance. DaimlerChrysler Financial Services is the third-largest automotive
captive financial services provider in the world.