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DaimlerChrysler to Add Investment in Beijing Jeep
DaimlerChrysler will inject 226 million US dollars into Beijing Jeep, its joint venture with Beijing Automotive Industry Corp., Thursday's Chinadaily reported.
The two companies also decided to extend the joint venture's term by 30 years to 2033.
The new investment demonstrates DaimlerChrysler's strong confidence in the potential of the Chinese auto market, said Eike Lippold, president of DaimlerChrysler (Northeast Asia).
Beijing Jeep has a production capacity of 85,000 Cherokees and BJ2 jeeps as well as 60,000 engines annually, which produced 21,000 automobiles last year.
The joint venture has begun to suffer losses since 1998, mainly due to a lag in new model development, said An Qingheng, president of Beijing Jeep.
Beijing Jeep will produce a new-generation BJ2 jeep in 2002 and the product will be completely made out of locally-manufactured parts, said Lippold.
General Motors another world's auto giant, will also produce its new product model next year through its joint venture, Jinbei GM Automobile Co. in Northeastern China's Liangning Province.
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