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M-B gets go-ahead for production in China

DaimlerChrysler has been given the green light to produce Mercedes-Benz cars and vans in China through two new joint ventures.

The company will build Mercedes-Benz E- and C-Class models in a new facility in Beijing with partner Beijing Automotive Industry Holding Company (BAIC).

The company will also build Mercedes-Benz Sprinter, Vito/Viano vans in a new facility in Fuzhou with Fujian Motor Industry Group and the China Motor Corporation.

"This approval significantly enhances DaimlerChrysler’s position in the Chinese market and strengthens the excellent relationship we have with our Chinese partners," says DaimlerChrysler CEO Prof. Jürgen Schrempp.

The commercial vehicles division’s planned joint venture for vans in China will include production of the Mercedes-Benz Sprinter and the new Viano/Vito van at a new facility in Fuzhou City in Fujian Province, with a planned annual capacity of 40,000 units. Production is scheduled to begin in 2006.

DaimlerChrysler and its partners will employ approximately 15,000 people in China through the joint ventures. As part of the planning for new production activities, DaimlerChrysler is training new employees to ensure the new operations have the same high quality standards. The company has also been evaluating local suppliers to help support the new production.

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