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D/C looks past VW for small-car project; Asians, European still have chance to make entry model.(DaimlerChrysler AG)(Hyundai Corp.)(Volkswagen AG)(Brief article)

Automotive News Europe,  September, 2006  by Hamprecht, Harald; Stein, Jason

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Byline: Harald Hamprecht, Jason Stein

Volkswagen is no longer a candidate to build a small car for DaimlerChrysler for the US.

The VW-made vehicle would would be too expensive, said a high-level D/C source.

With VW out, D/C's search for a partner has shifted to three Asian carmakers and one European vehicle manufacturer.

Korea's Hyundai, Japan's Mitsubishi, China's Chery Automobile and an unnamed European automaker are being considered as possible partners for the small car, sources said.

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