Car giant DaimlerChrysler has signed a new agreement with its joint venture partner Beijing Automotive Industry Holding Co, the New York Times said. Under the deal, the venture will build a new facility outside Beijing to replace the existing Beijing Jeep plant. The new plant will produce Mercedes C-class and E-class cars, as well as the Jeeps that the venture already makes. In addition, DaimlerChrysler will manufacture mediumand heavy-duty trucks with Beiqi Futian, a local truckmaker in which Beijing Automotive is the major shareholder. Total investment in the venture will be around i1bn.
Meanwhile, Ford Motor said it would triple production at its plant in Chongqing to 150,000 units a year. The US carmaker only started assembling cars in China in January, in a joint venture with Chongqing Changan Automobile.