Daimler eyes China base for US auto production
DaimlerChrysler AG is planning to build compact cars in China that will in turn be sold in the US market. The company is in talks with Fujian Motor Industry to set up a joint venture that will see the cars produced in southern China. Lower labor, factory and raw material costs led Daimler to consider China as a production base. Furthermore, US consumers' growing preference for Asian cars instead of the American cars also played a part in the company's decision. Daimler officials say that the new line will not affect the sales of current DaimlerChrysler, Jeep or Dodge vehicles in the US.