DaimlerChrysler AG looking at more purchases from China auto parts market

DaimlerChrysler AG looking at more purchases from China auto parts market

DaimlerChrysler AG has said in a statement that they are aiming at enhancing purchases from the Chinese auto part market. The aim is to increase it eight times in the next two years.

The aim is to cut costs as the world markets are become pretty competitive and it is hard to remain profitable with rising raw material costs.

DaimlerChrylser has plans to spend about $840 million buying components in China in 2008. Their current business expanse stands at around $100 million.

The company is also making Mercedes cars on a small scale in a Beijing plant and has plans to expand it to an annual capacity to 25,000 cars by the end of 2006.

Till Becker, chief executive of DaimlerChrysler’s northeast Asia region spoke about the company’s plans: “As we continue to expand production of passenger cars and commercial vehicles in China with our partners, the amount of parts and components we are sourcing in China will increase exponentially.”