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Chrysler Unit May Build Minivans in U.S. for VW

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From Bloomberg News

DaimlerChrysler’s Chrysler unit may build minivans in the United States for Volkswagen as Europe’s largest carmaker tries to attract American buyers and cut losses.

The two companies are in talks on the plan, though no agreement has been reached, Chrysler Chief Executive Thomas LaSorda said at the Frankfurt International Motor Show.

The proposal, which follows other pacts such as Chrysler’s use of a Volkswagen diesel engine for the Dodge Caliber model in Europe, would allow Volkswagen to introduce a new model in the U.S. that is built there rather than rely on an import, while providing more work either for Chrysler’s St. Louis or Windsor, Canada, plant.

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