DaimlerChrysler to invest US$1.1 billion in China

DaimlerChrysler, the world's No. 5 carmaker, and its Chinese partners plan to invest 1 billion euros (US$1.1 billion) in joint business projects that include building Mercedes cars in the Asian country, <Spiegel magazine said.

The carmaker will sign an accord with the Beijing Automotive Industry Holding Co (北京汽車工業控股) "in coming days" to set strategy for joint production of Mercedes C-Class and E-Class models and commercial vehicles, the magazine quoted chief executive officer Juergen Schrempp as saying.

The company wants to produce about 25,000 passenger cars of the C-Class and E-Class in China over the "medium-term," Schrempp told < Schrempp said it will take "a tough bit of work" for the company's Chrysler division in the US to post positive figures this year.

The proposed agreement will also include a reorganization plan for the company's bus manufacturing in the country, the Frankfurter Allgemeine Zeitung said, citing unidentified spokespeople.

The world's No. 1 luxury carmaker is trying to catch up to rivals Bayerische Motoren Werke AG and Volkswagen AG's Audi AG, which are either beginning to or already making vehicles in China, the world's fastest-growing auto market.