Itsme
01-05-2006, 11:37 AM
DaimlerChrysler, Volkswagen in minivan alliance
DETROIT (Reuters) - DaimlerChrysler AG's Chrysler Group (DCXGn.DE) (NYSE:DCX - news) and Volkswagen (VOWG.DE) said on Thursday that they have reached an agreement under which the U.S.-based carmaker will manufacture minivans for the German rival.
Production of the Volkswagen minivan, which is based on the next generation Chrysler and Dodge minivan platform, will begin in 2008, the companies said. The vehicle will be sold in the North American market.
"Although the Volkswagen minivan shares its basic architecture with upcoming Chrysler and Dodge vehicles, this will be an all-new product," Wolfgang Bernhard, chairman of the VW Brand Board of Management, said in a statement.
"With this new vehicle, we are going to enter another important market segment with our own product," he added.
The minivan would plug a gaping hole in Volkswagen's line-up. Analysts estimate it could result in up to 50,000 units in added annual sales.
Volkswagen expects sales for its flagship VW brand to grow 5 percent to 10 percent in the United States in 2006 for the first time in six years, boosted by its rejuvenated model line, after falling 12 percent in 2005.
Volkswagen has been lagging in the United States, the world's biggest auto market, due to an aging product range and a strong euro. The last time the VW brand notched higher annual sales was in 2000.
DETROIT (Reuters) - DaimlerChrysler AG's Chrysler Group (DCXGn.DE) (NYSE:DCX - news) and Volkswagen (VOWG.DE) said on Thursday that they have reached an agreement under which the U.S.-based carmaker will manufacture minivans for the German rival.
Production of the Volkswagen minivan, which is based on the next generation Chrysler and Dodge minivan platform, will begin in 2008, the companies said. The vehicle will be sold in the North American market.
"Although the Volkswagen minivan shares its basic architecture with upcoming Chrysler and Dodge vehicles, this will be an all-new product," Wolfgang Bernhard, chairman of the VW Brand Board of Management, said in a statement.
"With this new vehicle, we are going to enter another important market segment with our own product," he added.
The minivan would plug a gaping hole in Volkswagen's line-up. Analysts estimate it could result in up to 50,000 units in added annual sales.
Volkswagen expects sales for its flagship VW brand to grow 5 percent to 10 percent in the United States in 2006 for the first time in six years, boosted by its rejuvenated model line, after falling 12 percent in 2005.
Volkswagen has been lagging in the United States, the world's biggest auto market, due to an aging product range and a strong euro. The last time the VW brand notched higher annual sales was in 2000.