DaimlerChrysler to expand in Chinese market
Struggling in their domestic market of United States, DaimlerChrysler has announced plans to expand their operations in the ever-growing market of China. The company has announced plans to increase its production in northeast Asia with plans to build the Chrysler 300 sedan model in China. This would mean more investment from the American automaker and this figure might now reach an estimated EUR1.5 billion.
The company would be producing the Chrysler mini-van at their plant in Fuzhou, China and Taipei (for the Taiwan market). The production of these new vehicles is expected to begin next year and would help the company to solidify their positions here. DaimlerChrysler is not the only American company to expand their operations in this region. Ford and General Motors have similar plans and are already working on it.
China happens to be the third biggest auto market in the world after USA and Japan. Its growing and the market see sales of around 5 million vehicles per year. Chrysler Chief Executive Tom LaSorda said in a statement about their plans: “If you take a look at Chrysler group sales in 2004 and 2005, they are extremely low. We’re not happy with those numbers. But we anticipate over the next two or three years to more than triple that.â€