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Beijing Jeep Not Affected by Daimler Chrysler's Staff Downsizing
The Daimler Chrysler Group , the world third largest auto manufacturer and No.1 Cross-country Jeeps, will reduce 20 percent of its staff, lay six factories idle and close a number of factories to cut output in the coming three years.
However, these actions won't pose any threat to its project, Beijing Jeep , in China, according to the person in charge of the Northeast Asia Headquarter of Daimler Chrysler of the United States.
The responsible person of the Beijing Jeep Co., Ltd., clearly indicated that the staff reduction of Daimler Chrysler won't bring any negative influence to Beijing Jeep as this action will mainly be carried out in its factories at the headquarter of the company and those in South and North Americas due to the basic market saturation, furious competition and lack of sufficient potential in these regions. Whereas China is a giant attractive market of great potentiality, Daimler Chrysler has long been interested in this market and will strengthen, not weaken, its investment in China.
He also noted that the staff cutting will indirectly benefit Beijing Jeep because the decision-making powers over many major matters of Beijing Jeep will largely be shifted to Northeast Asia headquarter of Daimler Chrysler in Beijing from the US headquarter and will thus quicken the reaction of the decision to the market.
It's reported that Beijing Jeep is actively executing the cooperation plan made by both Chinese and American investors and sees a good trend of development in general. Its Grand Cherokee introduced to the market early this year is now in the great demand and it is estimated that 1,000 such vehicles can be manufactured and sold out annually. Besides, the manufacture and sale of Beijing Jeep products will rise by around 30 percent this year as the tendency of decrease has been basically stopped.
Furthermore, Beijing Jeep is busily planning, together with DaimlerChrysler, for products to be put into production after 2003. China will become an important production base of DaimlerChrysler in Northeast Asia after its entry into the WTO.
By PD Online Staff Deng Gang
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