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Daimler: Expansion plans in China remain untouched by crisis
Fri, Oct 17, 2008
Reuters

By Kirby Chien

BEIJING - Daimler AG , the world's leading truck manufacturer, said greater China passenger car sales in the first nine months soared, while expansion plans in the country remain untouched by the financial crisis.

Daimler said it sold 32,375 passenger cars, including imports, in Hong Kong, Macau and mainland China in the nine-month period, up 54 percent over the same period a year earlier. It did not report China truck sales.

Ulrich Walker, the chairman for Daimler Northeast Asia, said the financial crisis had not changed the course for Daimler's operations in China.

"It is too early to give a detailed forecast for next year, however, we also expect growth next year," Ulrich told reporters before a news conference.

China's passenger car sales shrank for a second month in a row in September, amid a slowing economy in the world's second-largest vehicle market.

Industry researcher J.D. Power and Associates forecast China auto sales growth this year at 9.7 percent, less than half of last year's 24.1 percent.

"The situation in Chna is much better than other parts of the world," said Walker.

"We will continue with what we have planned with products and joint ventures," he told reporters. "We are optimistic about greater China."

Daimler and Beiqi Foton , a major Chinese commercial vehicle company, agreed earlier this month to form a 50-50 joint venture to sell trucks.

Walker said he expected approval for the joint venture with Foton in the second half of next year.

The JV will sell medium and heavy-duty trucks in China and in overseas markets under Foton's Auman brand.

With the deal with Foton, Daimler will have three joint ventures in China, two for commercial vehicles and one for passenger cars.

Daimler will begin producing Mercedes vans in southern China in the first half of 2009, and will also introduce the Smart brand in China early next year, said Walker.

"People are more nervous, but China is a big market."

 

 
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