AUBURN HILLS, Michigan - DaimlerChrysler Corp said it agreed to sell tooling and other assets from its Sterling Heights Assembly Plant in Michigan to East Coast Trading Co, a US-based intermediary exporter, for an undisclosed sum.
The agreement does not include buildings or real estate.
Russian carmaker Gorky Automotive Works (GAZ) will purchase the manufacturing assets from ECTC. The assets were formerly used to build the Chrysler Sebring and Dodge Stratus sedans, which will be replaced by new models later this year.
'The sale of our out-going plant tools provides an extended productive life for these high-quality manufacturing assets,' said John Stellman, Vice President - Mergers and Acquisitions, NAFTA and South America for DaimlerChrysler.
In March 2005, DaimlerChrysler announced it would invest 278 mln usd in its Sterling Heights plant.
In addition to purchasing manufacturing assets, GAZ will be granted full- vehicle production rights in Russia and other CIS countries.
GAZ also will enter into an exclusive, multi-year supply agreement for the purchase of 2.4-litre four-cylinder engines from Chrysler Group's Saltillo (Mexico) Engine Plant for use in production of the mid-size vehicle in Russia and other CIS countries. newsdesk@afxnews.com har COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
The agreement does not include buildings or real estate.
Russian carmaker Gorky Automotive Works (GAZ) will purchase the manufacturing assets from ECTC. The assets were formerly used to build the Chrysler Sebring and Dodge Stratus sedans, which will be replaced by new models later this year.
'The sale of our out-going plant tools provides an extended productive life for these high-quality manufacturing assets,' said John Stellman, Vice President - Mergers and Acquisitions, NAFTA and South America for DaimlerChrysler.
In March 2005, DaimlerChrysler announced it would invest 278 mln usd in its Sterling Heights plant.
In addition to purchasing manufacturing assets, GAZ will be granted full- vehicle production rights in Russia and other CIS countries.
GAZ also will enter into an exclusive, multi-year supply agreement for the purchase of 2.4-litre four-cylinder engines from Chrysler Group's Saltillo (Mexico) Engine Plant for use in production of the mid-size vehicle in Russia and other CIS countries. newsdesk@afxnews.com har COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
© 2006 AFX News
