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Trans-Atlantic vans go

9th October 2003, Page 12
9th October 2003
Page 12
Page 12, 9th October 2003 — Trans-Atlantic vans go
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SEPARATE PLANS by Ford and DaimlerChrysler to develop vans for both the European and US markets have been shelved.

Both projects have run into financial difficulties, with DaimlerChrysler struggling to nurse its US-based Chrysler unit back to profitability after a S1.Ibn second quarter loss. This has prompted it to scrap plans to open a new assembly plant in Georgia to build its Mercedes-designed Sprinter van. The situation was compounded by the US dollar's weakness and the fact that many of the van's components would have to he imported from Europe.

Ford cites crossover problem between the European Transi and the US Econoline, saying th+ different vehicle demands for cad market means the project canno justify investment. American driv ers want large, powerful engine and automatic transmission: whereas the European marke prefers small, efficient engine and choices of roof heights. anion; other differences. The Econolini takes almost 50% of the US full size van segment. A Ford spokes man says: "You don't play arouni with those types of numbers."

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