Chrysler plans global expansion after Daimler split

10 August 2007

US automaker Chrysler LLC is working on global expansion by forging new partnerships with automakers and a possible renewal of its earlier alliances with Mitsubishi and Hyundai, ever since its sale to private equity firm Cerebrus by Daimler AG.

Frank Klegon, vice president, product development, Chrysler, told an an automotive conference in Michigan yesterday, "We want to grow as a global enterprise."

The announcement comes barely a week after Cerberus bought an 80.1-per cent stake in Chrysler for $7.4 billion on 3 August. (See: DaimlerChrysler, Cerberus complete Chrysler deal)

Once the third largest global automaker, it was eclipsed by the rising sales volumes of Japanese rivals like Toyota. Chrysler now plans to establish new engineering and procurement centres in China and Poland to supplement its facilities in Mexico and India, Klegon disclosed.

These centres will also help locate components suppliers and negotiate with local governments on regulations and fine-tune vehicles to regional consumer demand.

"We look to have three development centres that will look from a global perspective for lower-cost sourcing," he said. The aim would be to design and develop lower-cost vehicles with a local partner that could be exported to other regions.

Chrysler's Chinese-made cars will be the first on the road for local sales and exports, while there are no plans for using India as a major manufacturing centre. "I don't see us producing cars in India for quite some time... It's more of a technology hub for us," Klegon said.