Wed, Apr 19, 2006 - Page 12 News List

China Motor touts deeper ties with DaimlerChrysler

By Jason Tan  /  STAFF REPORTER IN TAOYUAN

With the first locally assembled Chrysler Group vehicle expected to be commercially available in June, collaboration between the nation's No. 2 automaker China Motor Corp (中華汽車) and the Chrysler Group is expected to deepen in the future, company officials said yesterday.

"Plans are still being studied now and there are possibilities that we will locally assemble a second vehicle from the Chrysler Group next year," said Huang Wen-cheng (黃文成), president of China Motor.

Huang spoke to reporters on the sidelines of a ceremony at Yangmei (楊梅) Township in Taoyuan County, where the first locally produced Town & Country minivan rolled off the production line.

The automaker obtained permission from DaimlerChrysler AG to locally assemble Town & Country minivans in December 2004. Huang said the new projects will include a mid-sized sedan, but refused to offer more details.

Tom LaSorda, chief executive officer and president of the Chrysler Group, said that the introduction of the minivan represents the group's long-term presence in Taiwan, and cooperation with China Motor signifies its ambitious growth strategies in Asia.

"The new Town & Country is our major product in Taiwan and it will grow our sales by six-fold here this year," LaSorda said.

The Chrysler group sold a total of 575 vehicles in Taiwan last year.

Sales of Town & Country minivans are expected to reach at least 400 units a month after they are formally introduced here on June 3, said Matt Chang (張世和), chief executive officer of Chrysler Group Taiwan Sales Ltd.

Price tags on the 3.3-liter minivans will fall in the range of NT$900,000 (US$27,704) to NT$1.3 million, much cheaper than the NT$1.7 million for imported units, Chang said.

These locally assembled models will mean that China Motor's production capacity will be boosted, he added.

According to Huang, the new Town & Country, which is tailored to the local market, will be produced in China by China Motor's affiliate South East Motor (Fujian) (東南汽車), with an official launch set for March next year.

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