Feb. 27, 2007 (China Knowledge) – DaimlerChrysler might have another potential buyer in its loss-making Chrysler unit. According to Shanghai newspaper Oriental Morning Post, FAW Group, China’s biggest carmaker, is considering purchasing part, or the whole of Chrysler.

China is now the world’s third-largest carmaker, next to the U.S. and Japan. In 2006, 7.3 million vehicles were produced in China, 27.3% higher than in 2005. FAW Group is ranked the top auto manufacturer with 1.2 million vehicles produced. But the success of FAW Group is mainly due to its joint ventures with German Volkswagen and Japanese car makers such as Toyota and Mazda. In 2005, it produced less than 10,000 units of its own branded car, the Hongqi.

Currently, China is encouraging domestic car makers to develop their own technologies. In order to achieve this, some carmakers are targeting established foreign carmakers and their technologies and talent instead of expanding via organic growth.