DaimlerChrysler has decided to extend its joint venture with Beijing Jeep for another 30 years, the Financial Times said. The USGerman auto giant intends to invest around US$226m over coming years to finance the production of a series of new models. Plans are also well advanced to secure a licence from the Chinese government to manufacture cars as well as jeeps, transfer technology, axe poor quality suppliers and establish car-financing schemes.
The first new model would be the Pajero sports utility vehicle, made under licence from Mitsubishi, in which DaimlerChrysler has a 37.3 per cent stake. The Pajero would initially have a 40 per cent local content, but this is expected to double after five years.