DaimlerChrysler AG announced yesterday morning that it had picked private equity firm Cerberus Capital Management to take 80% stake in Chrysler. "The cooperation between Chrysler and the Chinese automaker Southeast Motor (SEM) won't be affected by the deal," said Jian Qinglong, general manager of Southeast Motor. The two parts have agreed on manufacturing grand Caravan in China at Southeast Motor based in Fuzhou.
Jian also said that according to the agreement reached by the two parties, production of Grand Caravan at SEM would continue regardless of Chrysler's future and if Chrysler has proposed to cancel the agreement, SEM would get due compensation from Chrysler. Currently Grand Caravan has been under production and new models are scheduled to be launched by the fourth quarter this year.
The first Grand Caravan was reported to have gone onto the production line this January, and will undertake three phases of test production before formally being launch. Daimler-Chrysler signed the agreement with SEM to co-produce the Grand Caravan two years ago.
