Automobiles may soon join China's long list of foreign-branded goods made here then shipped back to Western countries to sell.

In September, DaimlerChrysler AG was reported to be under discussion with state-owned Chery Automobile Co Ltd to make its Dodge-branded subcompact car in China and then export it to the United States and Europe.

A specialist in making inexpensive compacts, Germany's DaimlerChrysler will be able to develop more small-sized fuel-efficient models after slow sales of gas-guzzling sport utility vehicles led to a record third-quarter loss of US$1.5 billion.

Original equipment manufacturing production has been popular among Western auto giants as making cars in countries that have cheaper labor costs can sharpen competitiveness amid slow sales in home markets.

Italy's Fiat S.p.A may also be in talks with Chery over another OEM deal in China, according to media reports. "We are interested in cooperating with the Chinese automotive industry and I hope that they can be more open to global competitors, not because Fiat or any other car makers intend to dominate the market, but I am worried about the waste of resources," said Sergio Marchionne, chief executive officer of Fiat, who refused to comment on the deal. "I do invite Chinese carmakers to be the first to offer cooperation with others, which will be more helpful instead of being unilateral under one director," he said.

The surging OEM trend in the Chinese automotive industry has sparked heated discussion as analysts are concerned such production will overshadow the nation's effort in developing self-owned brands.

"For the limits in Chery's production capacity, it may face pressures to keep a good balance of manufacturing other companies' products while paying attention to making its own models," said Jia Xinguang, chief analyst of the China National Automotive Industry Consulting and Development Co. "Made-in-China products can be seen all over the world but the brand is essential for the world market entrance," Jia said.

Source:佚名