DaimlerChrysler to Import Chinese-Built Chryslers to North America?

For the time being, however, DaimlerChrysler is only talking with an existing Chinese partner in hopes to set up a joint venture

"We're not talking about (making) current products," said Grube. "We are talking about a totally new segment." (Photo: DaimlerChrysler Canada)

that would produce and then export a Chrysler, Dodge or Jeep vehicle to North America. The talks, however, are hardly light discussion, but more so, in-depth analysis that will require a decision to be made by the second half of 2005, according to Chrysler's Chinese division.

If an arrangement to build new vehicles in China to be sold into North America was struck, the German-owned domestic-North American based automaker would be the first Western firm to set up export-oriented manufacturing plants in China. Honda was the first Japanese automaker to initiate this trend.

In an effort to quell a backlash from workers and union heads, Grube noted

Chrysler has looked at the possibility of aligning with DaimlerChrysler's smart division, which builds its forfour subcompact in the Netherlands alongside Mitsubishi's award-winning Colt. (Photo: DaimlerChrysler)

that the cars it is considering producing in China wouldn't affect its current workforce.

"We're not talking about (making) current products," said Grube. "We are talking about a totally new segment."

That segment may include a new subcompact model, to do battle in an ever growing segment critical for pulling first time new vehicle buyers into the Chrysler Group family. The automaker has looked at the possibility of aligning with DaimlerChrysler's smart division, which builds its forfour subcompact in the Netherlands alongside Mitsubishi's award-winning Colt. While a rebranded Colt would fit the bill, the cost of manufacturing an entry-level vehicle in Europe is once again, simply out of the question.