Daimler Chrysler may relocate China plant to RP

American car manufacturer Daimler Chrysler is giving the Philippines a second look.

Daimler Chrysler, which manufacturers the Jeep Grand Cherokee and the Dodge Ram, is reportedly having some problems in its manufacturing operations in China and is scouting around for a more suitable base for operations.

Among the countries that Daimler Chrysler is reportedly looking at is the Philippines. However, the Philippines has strong competition from Indonesia and Malaysia.

There is some concern from top executives of Daimler Chrysler about the Philippines’ continuing peace and order problem as well as political situation.

Aside from those concerns, Daimler Chrysler is also looking at the government’s Motor Vehicle Development Program (MVDP), the still unresolved excise tax issue, and the used vehicle policy.

Although it never had any assembly operations in the Philippines. Daimler is well-known in the country because of its ownership of the luxury vehicle Mercedes Benz.

Daimler-Chrysler is currently enjoying a profitable first quarter in the US. It announced a first quarter operating profit of $111 million and reported US sales of 200,421 units in April this year compared to 187,119 units in April last year, or an increase of three percent.

Aside from the Jeep Grand Cherokee, Daimler-Chrysler also assembles the Jeep Wrangler and Durango.

It also manufactures the vintage-looking PT Cruiser and the luxury sedan Sebring. – Marianne Go