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Chrysler denies Chinese purchase talks

By Li Fangfang (chinadaily.com.cn)
Updated: 2009-02-23 19:44

Chrysler LLC said on Monday that it was not in talks with any Chinese automakers regarding an assets sale, denying a Chinese report of Beijing Auto's intention to purchase Chrysler.

Related readings:  GM, Chrysler seek more govt aid, to cut more jobs  Fiat and Chrysler in partnership talks  Chrysler, China's Chery call off cooperation

"We are no longer engaged nor pursuing any discussions with any automakers other than Fiat,"said Chrysler spokesman Stuart Schorr in an email statement to China Daily.

"We must emphasize we have an exclusive non-binding agreement with Fiat. Chrysler is 100 percent focused on executing our viability plan and potentially forming a global alliance with Fiat."

China Business News reported on Monday that Beijing Auto, the Chinese partner of Hyundai Motor and Daimler AG, was interested in buying assets and technologies in both the vehicle and engine segments for its self-developed brands, citing an unnamed executive of the Chinese automaker.

However, Reuters reported later that a Beijing Auto spokesman also denied the purchase report, saying, "we have not held discussions with Chrysler on asset purchases".

Fiat and Chrysler last month signed a non-binding agreement for a strategic alliance that would give the Italian auto empire a 35-percent stake in the troubled US car firm.

In December, Chinese newspaper Securities Daily reported that Anhui-based Chery was going to buy assets from Chrysler for its overseas expansion, backed by a 10 billion yuan ($1.46 billion) loan from the Export-Import Bank of China. Both Chery and Chrysler denied the rumor.