BAIC planning to buy Fujian Daimler-Chrysler

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Beijing Auto Industry Corporation (BAIC) is planning to take over Fujian Daimler-Chrysler, which is a joint venture partner of SouEast Auto. BAIC already have a joint venture with Mercedes Benz to produce the Mercedes range of sedans in China, however by taking over the Fujian joint venture they will get access to the lucrative MPV market, which Mercedes is planning to attack shortly with the Chinese built Viano MPV.

The current JV structure with Fujian Auto’s, the owner of SouEast is currently majority controlled by Fujian Auto at 50% and with Daimler-Chyrsler owning 33.78% and Taiwan’s Zhonghua car company owning 16.22%, under the agreement, Fujian Auto will sell 40% of its shares to BAIC.

Mercedes are planning to sell 30,000 Chinese built Viano’s in the next 2 years, with it seeing a large gap in the premium MPV market that has not yet been filled in by any other players, although Buick will be stepping into the arena later this year with its new GL8.

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  • dragin
    June 9, 2010

    The Chrysler-Daimler tie-up officially ended last year, followed by reports that BAIC waas going to step in and take Chrysler’s place in that 34% stake at Fujian. But now I guess that has changed.

    btw Does anyone know if the Chrysler minivan production at Fujian Auto has ended?

  • bilbo
    June 10, 2010

    Chrysler and Daimler and no longer paired up……..Damiler sold them off to a hedge fund and the Fiat Group bought them last year.

  • Analyst
    June 10, 2010

    Their partnership (DaimlerChrysler) in China outlasted the one overseas.

  • June 10, 2010

    Hello Dragin, production Dongnan (Soueast) Chrysler/Dodge Caravan/Voyager:
    Jan 2010 Dodge 45, Chrysler 14
    Feb 2010 Dodge 34, Chrysler 0
    March 2010 Dodge 186, Chrysler 2
    April 2010 Dodge 287, Chrysler 0
    So the Dodge is still in production.
    Greetings, Erik.

  • bilbo
    June 10, 2010

    It wasn’ a partnership, Daimler owned Chrysler and sold it….th global name is now Daimler

  • dragin
    June 10, 2010

    Thank you for that update Eric. Your mastery of these figures never ceases to amaze me.
    Do you remember way back in the 90s when the Caravan was assembled from CKD kits by the now defunct Sanxing Motors down in Guangdong? The model does have a certain appeal that has been like oxygen for Chrysler.

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