Beijing Auto denies in talks to buy Chrysler assets

Chinese automaker Beijing Automotive Industry Co said on Monday it has not had talks with Chrysler LLC about buying assets or technology from the U.S. company, denying a domestic media report.

The Chinese Business News, citing an unnamed executive at Beijing Auto, reported on Monday that it had initial talks with Chrysler on buying assets and technology as it seeks to expand globally via acquisitions.
Beijing Auto, parent of truck maker Beiqi Foton Motor Co, is interested in buying some of Chrysler's vehicle and engine manufacturing facilities as well as technology to help boost its development of its own brand of automobiles, the report said.

Beijing Auto would be likely to get financial support from the Beijing city government for an acquisition, it added, although it gave no figure for the potential size of a deal.

"We have not held discussions with Chrysler on asset purchases," the Beijing Auto spokesman said.

A Chrysler representative could not be immediately reached for comment.

Chrysler has been granted $4 billion in U.S. loans and is seeking an additional $5 billion as it struggles to stave off bankruptcy.

Chrysler pulled out of a car venture between Beijing Auto and Daimler AG soon after Daimler sold control of the Detroit automaker to Cerberus Capital Management [CBS.UL] in 2007, although Chrysler's 300C sedan is still made at the venture.

Beijing Auto also runs a car venture with Hyundai Motor Co. It agreed recently to extend its ties with Daimler into the medium- and heavy-duty truck sector.

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