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First BMW, now MercedesBenz to make Smart in China and Sue Shuanghuan

SHANGHAI - October 31, 2007:

Mercedes-Benz is weighing a plan to produce Smart in China following its launch in the U.S market, Chinese media reported today.

Citing a Mercedes-Benz official under the condition of anonymity, auto industry Web site reported that the company is considering producing Smart either in its existing joint venture in southeast China's Fujian Province or in a new plant.

Last month the Associated Press reported that Daimler AG sees Asia, especially China, as a potential new market for its Smart fortwo.

"It makes sense to market the brand in China, where we already have a profound production base there, though primarily for the domestic market," said Rainer Schmueckle, chief operating officer of Daimler AG. He added that the Smart unit also is poised to break even this year as it readies for the car's U.S. launch in early 2008.
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