Volkswagen: Seeking more cooperation with DaimlerChrysler

Friday, April 14, 2006

Volkswagen: Seeking more cooperation with DaimlerChrysler

Volkswagen is looking for a tighter cooperation with DaimlerChrysler, including shared transmissions and a European van.

It said VW managers were in talks with their southern German rivals about selling VW manual transmissions for use in Mercedes-Benz vehicles and for letting Chrysler use VW's Sharan van platform for a new vehicle aimed at the European market.

Volkswagen Brand Group head Wolfgang Bernhard, a former Chrysler executive, said in February he was looking at further partnerships with rival carmakers to help advance a product offensive.

Volkswagen has already struck deals with Daimler's U.S. arm Chrysler, which will build a VW minivan for the North American market. The Chrysler Group also uses VW engines in some models.

Chrysler said in February that VW was among the partners it was considering for a subcompact car in North America.

A DaimlerChrysler spokesman said he could not confirm the report. Volkswagen was not immediately available for comment.

One industry source questioned whether premium brand Mercedes-Benz would want to use transmission components from mass-market producer VW.