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MACHINIST - Chrysler in talks with TN government to set up facility in Tamil Nadu

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Home arrow Aerospace arrow Chrysler in talks with TN government to set up facility in Tamil Nadu

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Chrysler in talks with TN government to set up facility in Tamil Nadu
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Written by Jeeva   
Thursday, 19 June 2008

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Chennai: American car maker Chrysler has agreed to send a team to Tamil Nadu to explore the possibility of setting up a greenfield facility there. Although Chrysler’s talks with the TN government are in the early stages as yet, the car maker has evinced a strong interest to enter the Indian car market.

With the Tamil Nadu government hoping to woo industrial projects worth Rs 30,000 crore this financial year, top officials from various departments had toured the US earlier this year.

Members of the touring team had met Chrysler executives to discuss the advantages of setting up a plant in Tamil Nadu. Sources say that the likelihood of the Chrysler seeting shop in India is high since it has separated from Daimler.

Chrysler LLC has been producing automobiles since 1925. From 1998 to 2007, Chrysler and its subsidiaries were part of the German based Daimler group and the company was named  Daimler Chrysler Motors Company LLC. In 2007, Daimler Chrysler AG sold 80% of Chrysler group to American private equity firm Cereberus Capital Management. Chrysler is now the world’s largest private automaker.

Most of the large automobile investments in India are being made in Maharashtra and Tamil Nadu with plants coming up around Chennai and along the Mumbai-Pune corridor.

In Maharashtra, Tata Motors, Mahindra& Mahindra and Fiat have expanded their existing capacities and Volkswagen and  General Motors have set up plants there.

Tamil Nadu, on the other hand, has Nissan, Renault, Ashok Leyland and the JV between Hero group and Daimler AG to manufacture light commercial vehicles may be set up there.

 
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