U.S.-German auto giant DaimlerChrysler on Wednesday said banking regulators had approved a vehicle financing venture in China. "The initial approval is the first step in establishing vehicle financing in China, which the company expects to be operational in the fall of 2005," DaimlerChrysler said in a statement. "The approval to set up vehicle financing in China is a milestone for DaimlerChrysler as it signifies that now all of the group's business units will be present here," Ruediger Grube, head of DaimlerChrysler's China operations, was quoted as saying. DaimlerChrysler Services will run the financing venture. "Just as we do in other markets, DaimlerChrysler Services will offer very competitive rates for passenger car customers and fleet owners from one source," said Bodo Uebber, head of DaimlerChrysler Services. DaimlerChrysler plans to invest 1.2 billion euros in China for its ongoing and future projects, which include Mercedes-Benz passenger car and van production, and production of heavy and medium-duty trucks. With the China venture, Berlin-based DaimlerChrysler Services will have more than 100 vehicle financing subsidiaries in 40 countries. It manages a contract volume of 105 billion euros and employs some 11,000 people, the company said. Earlier this year, U.S.-based General Motors said banking regulators had also approved plans by GM and its partner in Shanghai for a joint financing venture.
