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German-US auto giant DaimlerChrysler plans to increase its input on China-made auto parts by eight fold over the next two years in a bid to step up localized production in its Chinese joint ventures, said Till Becker, CEO of DaimlerChyrsler for Northeast Asia region Wednesday.

 

Dr. Becker said that DaimlerChrysler wants to increase its annual expenditure on China-made auto parts from US$100 million to US$840 million in 2008.

 

The parts procured in China will be used in localized production by DaimlerChrysler's joint ventures in China, he said.

 

"DaimlerChrysler has a long-term commitment to China with regards to localization," he explained. "More Chinese auto parts suppliers will join our production supply chain."

 

Beijing Benz-DaimlerChrysler Automotive Corporation, a 50-50 joint venture of the Beijing Automotive Industry Shareholding Co. Ltd and DaimlerChrysler Company, involves an investment of US$600 million and a registered capital of US$400 million.

 

Beijing Benz produces mainly jeeps and vehicles for military use and Mercedes-Benz sedans.

 

In the first quarter of the year, a total of 2,470 locally assembled Mercedes-Benz sedans were sold across China.

 

A Beijing Benz-DaimlerChrysler official recently rejected the speculation that China will suspend domestic production of Benz cars.

 

Cadillac and Cherokee have recently stopped localized production in China due to lack of a Chinese logo. And Benz faces the same problem in China.

 

China's fast-growing auto market is the world's largest after the United States. All major automobile makers have factories in China.

 

(Xinhua News Agency June 2, 2006)