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From Gasgoo.

As the deal between Chrysler and Chery is coming around the corner, the Detroit-based automaker is planning to quit its joint venture with Beijing Auto step by step, state news agency Xinhua reported today.

According to a source familiar with the deal, Daimler AG is set to seek a property settlement at its three-party joint venture Beijing Benz-DaimlerChrysler Automotive Co Ltd (BBDC) over a period of six months, by which time Chrysler may have to part from the venture in a low-key attitude.

Following the sale of Chrysler by Daimler AG to Cerberus Capital Management last August, Daimler AG continues to hold 50% stake in BBDC on behalf of Daimler-Chrysler while Chrysler maintains the relationships only on the technological basis.

On the product front, though sales of the newly launched Sebring have been upbeat, the 300C model has seen a sharp sales decline in the Chinese market.

The source said the 300C production contract with BBDC will expire by 2010 and Secring will last till 2013.

Separately, Chery Automobile Co is reported to forge a tie-up with Chrysler by setting up a joint venture as early as the first half of this year, citing words of Jin Gebo, top aide to Chery's general manager.

Chery may use land and technology as investment in the joint venture while Chrysler will fund the project with cash. And this joint venture will be a 50-50 partnership.
 

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August 25, 2008 - Daimler and Chrysler have reached an agreement about their parting issue in Beijing Benz-DaimlerChrysler (BBDC), and Chrysler's personnel are gradually withdrawing from BBDC, reported First Financial Daily today. The three-way cooperation will be coming to later this year with Chrysler's dropping out.

Sources said that German car-maker Daimler AG has recently contacted Beijing Automotive Industry Holding Co. (Beijing Auto) to talk about the impact the split of Daimler and Chrysler will have on BBDC -- their joint venture with Beijing Auto, and meanwhile to explore a new means of cooperation with Beijing Benz. Reportedly, Daimler will invest an additional $1 billion in Beijing Benz as compensation for the withdrawal of Chrsyler.

Daimler and Chrsyler have agreed on their disbanding in their Beijing venture, where the Chrysler 300C model will be no more produced. Only four Chrysler technicians are now staying behind in the Beijing Benz facility for supervising the production of Chrysler's final batches of 300C and Sebring models. Most U.S technicians of Chrysler have withdrawn from BBCD.

From:Gasgoo.com
 

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Re: Chrysler to part from Beijing JV in pursuit of Chery

It's a pity to see American Chrysler-Jeep departing from the joint venture with BAIC. From 1983 lots of people worked hard to make the relationship work. There were so many cross-cultural hurdles to get over.....giving up that after lunch siesta was not easy......nor was tempering that selfish Western individualism. And then there was that big currency conversion issue of the '80s, and other sticky issues we didn't even hear about.

Then in 2003 after some 5 unprofitable years, we were surprised to hear the agreement was renewed for thirty years. But not long after that, American Jeep production was discontinued. And now this news of the Sebring and 300C production also coming to an end.

Following the demise of the Guangzhou-Peugeot and the NAC-Fiat JVs, this time it is China's historic first foreign joint venture that is even more quietly fading into the annals of industry history.
 

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Chery Eastar Soft Top

BBDC to continue making Chrysler 300C, Sebring.

September 2, 2008 - Beijing Benz-DaimlerChrysler (BBDC) will continue to make the Chrysler 300C and Sebring models for Chrysler LLC, said the China office of Chrysler Asia to auto.sina.com.cn recently, in response to the earlier media report that Chrsyler is dropping out of Daimler's joint venture in Beijing.

Last week, German automaker Daimler AG was said to have reached an agreement with its former partner Chrysler LLC over BBDC, a 50-50 joint venture between DaimlerChrysler and Beijing Auto. The result might be Chrysler's quitting from the Beijing-based 30-year venture. Chrysler employees have begun quitting BBDC in succession, with only four technicians left for the supervision of the production of Chrysler 300C and Chrysler Sebring, reports said, citing people close to the venture.

Due to their poor sales, BBDC reduced the output of Chrysler 300C and Chrysler Sebring considerably, added the insider. Currently, it is said to be planning to suspend the production of Chrysler 300C as its inventory could well satisfy the demand in the Chinese market. In order to consume stockpiled auto parts and components, BBDC will not resume the production of the sedan model until later.

Chrysler Asia denied the saying, adding that the making and sales of both Chrysler 300C and Chrysler Sebring continue as usual. The U.S. automaker has been in talks with BBDC on how to provide better products and service to the domestic consumers and believed that both sedan models would seize a bigger share in the Chinese auto market in the near future.

Chrysler has reportedly negotiated with several Chinese automakers, including Chery Auto and Great Wall Motor, over the establishment of auto joint ventures in China. Chrysler LLC is likely to have its 300C and Sebring models manufactured in BBDC by means of technical cooperation.
 

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Chrysler stops 300C, Sebring making in China.

January 13, 2008 - After it exited the Daimler venture in Beijing and its partnership talks with Chery Auto failed, U.S. automaker Chrysler LLC will not produce any more of its 300C and Sebring sedans in China after their current inventories are sold out, said Beijing News today. The two Chrysler sedan models will then be imported to the Chinese market for sale.

On Jan. 6, Tangshan Pangda Auto Sales Group in Hebei province bought out the 1,411 China-made Chrsyler 300C sedans and 1,863 China-made Chrysler Sebring sedans left in the inventories of Beijing Benz-DaimlerChrysler Automotive Co Ltd (BBDC). Chrysler pulled out of the joint venture in late 2008 and then it also stopped talks for partnership with Chery Auto. It seems impossible for any more Chrsyler cars to be made in China in the near future.

Last year, the Chrsyler 300C and Sebring sedans posted low sales in the Chinese market. In the first 11 months, the 300C only sold 3,480 units and in the first half of the year the Sebring sales just reached 5,590 units. After buying out the remaining 3,274 China-made 300C and Sebring sedans, Pangda Group will cut their retail prices and aims to sell them out by September this year.

Although the two Chrysler sedan models are unlikely to be produced any more in China in the coming few years, the technical permit for the China production and sale of Chrysler brand vehicles will not expire until 2012. Therefore, Chrysler vehicles will imported to the Chinese market for sale after the locally made ones are sold out.

In 2009, Chrysler will introduce to China three new models - Dodge Journey, Jeep Rubi-con and a model code-named MK, which is revamped from Jeep Compass. The company said it will adjust its global manufacturing plans in response to the financial crisis, but its Chinese business will not be affected.
source: Gasgoo.com
 

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That does not surprise me. Chrysler has always been the weakest of the "Big 3" for ages. In fact, Chrysler nearly went bankrupt in 2001 but Daimler AG only just came in and saved Chrysler. They don't even have any clocks in the World HQ to save money.
 
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