Chrysler, Ford Get OK to Build First U.S. Car Plants in Vietnam

Auto makers Chrysler Corp. and Ford Motor Co. have won initial approval to set up plants in Vietnam, making them the first of Detroit’s Big Three cleared to manufacture in the Communist country, government and company officials said Thursday.

The office of Vietnamese Premier Vo Van Kiet also gave its approval in principle for Japanese auto makers Toyota Motors Corp. and Isuzu Motors Ltd. to build plants, the officials said.

The government is expected to issue licenses soon, Chrysler country manager Vance Peacock said. Ford representative Greig Craft said, “I think it’s almost there.”

If all the applications are finally approved, they will boost the number of assembly plants licensed in Vietnam to 11.

Chrysler and Ford will be the first U.S. auto makers to set up shop in Vietnam. Their rival, General Motors Corp., has signed an agreement with a local agent to sell and service its Opel cars but is not seeking to manufacture in Vietnam.

Chrysler proposed a $199-million plant to build 17,000 vehicles a year in the south. Ford sought a $102-million plant near Hanoi.