Saturday, November 17, 2001
Daimler sees big future in China
HONG KONG
DAIMLERCHRYSLER AG sees China as its most important future market in Asia as barriers to foreign automakers are phased out, but the German-American automotive giant will still approach investments in the mainland cautiously, its chief economist says.
Peter-Ruediger Puf, who also serves as a director, ruled out immediate expansion of the group's joint ventures in China because the company, like other car makers, is focusing on reducing costs and fighting slowing sales and profits in the United States and Europe.
Although WTO membership will make China a friendlier place to do business, investments in China will have to wait.
"You must see all of us (car manufacturers) are in a very bad shape," Puf told Reuters in an interview on the sidelines of a recent business conference in the southern Chinese city of Guangzhou.
"And coming now to our investment plans and what do we want to do in China, you have to see this in front of this background," Puf said. "It could happen that... what we want to do (in China) can be a little bit prolonged."
Nonetheless, he predicted that China will become the company's top market in Asia - and a major source of worldwide growth.
In 10 years, Asia will account for some 25 per cent of Daimler-Chrysler's annual sales, which totalled 4.75 million vehicles in 2000, versus about five to six per cent currently.
The shift will largely reflect China's growth, as the US and European markets are mature with possibly declining sales in the near term. (Reuters) ( REUTERS )
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