Daimler-Chery talks don’t cover Chinese buyout
28 February 2007
DaimlerChrysler AG and China’s
Chery Automobile are in talks on increased cooperation but there are currently
no plans for Chery to buy the struggling German automaker’s US unit, the Wall Street Journal
reported. According to people familiar with the situation, the two companies
are looking into the possibility of setting up joint ventures in China to
produce components and whole vehicles. This would come in addition to a deal
agreed in principle in January for Chrysler to distribute Chery-made small
vehicles in North America, Europe and possibly
other markets. The agreement is expected to be fully completed by the end of
March. Earlier this month, DaimlerChrysler said it was considering “all options”
for its struggling US
unit.