BAIC says no plan to buy Chrysler assets & tech

Shanghai, February 23 (Gasgoo.com) Chinese automaker Beijing Automotive Industry Co (BAIC, or Beijing Auto) said today it has not talked with Chrysler LLC about buying assets or technology from the U.S. auto company, immediately denying a Chinese news report, said Reuters.

China Business News, citing an unnamed executive of Beijing Auto, reported this morning that the Chinese carmaker had initial talks with Chrysler on buying assets and technology while seeking to expand globally through acquisitions and to build its own brand model based on a global brand, just like Chinese auto giant SAIC's Roewe brand derived from British Rover.

Beijing Auto, parent of truck-maker Beiqi Foton Motor Co and Chinese partner of Hyundai Motor and Daimler AG, is interested in buying some of Chrysler's vehicle and engine manufacturing facilities as well as technology to help boost its development of its own brand of automobiles, China Business News said, adding that Beijing Auto is likely to get Beijing city's financial support for an acquisition.

"We have not held any discussions with Chrysler on asset purchases," the Beijing Auto spokesman told Reuters today. A Chrysler representative could not be immediately reached for comment.

Chrysler LLC quit a joint venture between Beijing Auto and Daimler AG in late 2008, a year after Daimler sold its control of the U.S. automaker, but Chrysler's 300C sedan is still made at the Beijing venture. Chrysler has been granted $4 billion in U.S. loans and is seeking another $5 billion to avoid bankruptcy.

Beijing Auto broke ground last week in suburban Shunyi district of Beijing city to build an auto research and development (R&D) center as part of the automaker's own-brand clean vehicle strategy. The Beijing Auto Industry R&D Base will have two SUV platforms and four sedan platforms.