Chrysler says its China operations unaffected

Shanghai, May 11 (Gasgoo.com) Chrysler LLC said a statement today that its global operations, including those in China, won't be affected by the company's bankruptcy proceedings in the U.S., Dow Jones reported.

"Chrysler's international businesses, including the Asia-Pacific region and China, are not included in the scope of the bankruptcy protection petition," the U.S. automaker said in a letter (to customers) published in the Economic Observer. "Daily operations (outside the U.S.) won't be impacted."

Chrysler said it will continue to pay suppliers and honor service warranties in China. Dealerships will continue to operate as usual, and the quality of Chrysler's vehicles won't be affected, the statement said. The imported vehicles of Chrysler, Jeep and Dodge brands will have sales, components and services available as before.

Currently, there is no local joint-venture partner in China to produce Chrysler autos, which are mainly imported into the Chinese market for sale. Chrysler sold 8,237 cars in China in 2008. In the first three months this year, there were 3,600 Chrysler vehicles sold in the Chinese market. 

Late last year Chrysler pulled out of Daimler's joint venture with Beijing Auto. A Chrysler deal to produce cars with China's Chery Auto failed in December. Another partnership to share technology, components and distribution channels with Great Wall Motor is on hold.

Chrysler filed for Chapter 11 bankruptcy protection on April 30 in the U.S. after it and the U.S. Treasury Department failed to reach a debt-reduction deal with lenders.