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DaimlerChrysler seeks alliance with a Chinese partner
By AMY CHEUNG
Published: September 20, 2006 12:00 AM
When DaimlerChrysler tries to build luxury sedans for the booming China market, it also said it could decide within months whether it will make inexpensive, small cars with a Chinese partner for export around the world, The Wall Street Journal reported. The paper quoted Dieter Zetsche, DaimlerChrysler's chairman, as saying that the company is in talks with potential partners to make subcompacts for sale under its Dodge brand. He said that working with a Chinese partner is "certainly a possibility." Subcompacts have long been popular in Europe and Asia and are gaining fans in North America as fuel prices pinch consumers and Asian auto makers assault the U.S. market with a bevy of B-segment offerings. The selection of a partner to make the car "might be [made] within this year," Mr. Zetsche said. Volkswagen AG has acknowledged having discussions about the project with DaimlerChrysler. A person familiar with the situation said that DaimlerChrysler has also been talking to Chinese car maker Chery Automobile Co. The new plant that DaimlerChrysler has built, along with its Chinese partner, government-controlled Beijing Automotive Industry Holding Co., on the outskirts of Beijing is an effort to expand the company's presence, especially in the fast-growing high end of the market.
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