Beijing-Benz to halt production of Outlander SUV

Beijing-Benz DaimlerChrysler Automotive Co Ltd (BBDC) announced plans to halt production of Mitsubishi Motors' Outlander SUV starting next year following the expiration of a cooperation contract. However, the company will continue to provide full-scale after-sale services for Outlander customers in the next ten years or more.

The company's other production schemes will not be affected by this change, company officials said. Meanwhile, the company also planned to launch Chrysler Sebring, a mid-sized sedan later this year and Mercedes-Benz C-Class sedans either at the end of this year or early 2008.

Due to failures in business operation, DaimlerChrysler sold Chrysler Group to private-equity firm Cerberus for $7.4 billion this May, and the two car-makers will separate their operations world wide if the split deal would be finalized in the third quarter of this year.

"It won't matter much as the impact of this separation will not come in the near future," said Xu Heyi, chairman of the joint venture. "The split is not necessarily a bad thing for Beijing Benz, as the new investment from Cerberus may help bring in more new models."