POSTED ON 05/01/07
The Chrysler Group is throttling up the pace of its expansion in Asia, even as it prepares a restructuring plan for North America that is expected to include job cuts and plant closings.
The division of DaimlerChrysler AG announced two strategic deals in Asia yesterday -- a plan to build a full-sized Dodge van in Taiwan with China Motor Corp. and sell it in Mexico, and a plan to assemble the Chrysler Sebring sedan in China.
Those are on top of an agreement in principle with Chery Sales Co. of China to sell Chery-made small vehicles in North America, Europe and possibly other markets.
"When you look at the global nature of the competitive scene, these kinds of international initiatives will be critical to Chrysler Group's success in the years ahead," Chrysler president and chief executive officer Tom LaSorda told reporters during a conference call yesterday.
http://www.theglobeandmail.com/servlet/story/LAC.20070105.RCHRYSLER05/TPStory/Business<snip> He has pointed out that it's impossible to make a subcompact car profitably in Canada or the United States, amid higher labour and production costs in the two countries.