Chrysler news

GAZ, part of a group owned by Oleg Deripaska, a tycoon close to Russian President Vladimir Putin, is seeking access to North American auto technology and know-how. GAZ bought a $1.54 billion stake in Canadian auto supplier Magna International Inc. in May. Over the next five years, it plans to invest $1.25 billion in the United States. Michigan Gov. Jennifer Granholm also is scheduled to meet Dolgov today to press for some of the investment, her office confirmed.

“If GAZ is going to invest $1.5 billion in the United States over the next five years, we want that investment here in Michigan,” Granholm spokeswoman Liz Boyd said. “The governor is going to take every opportunity to fight for investment and jobs in this state.” The U.S. auto industry’s deep difficulties were one of the factors behind Stuttgart, Germany-based Daimler AG’s decision this year to dissolve the nine-year DaimlerChrysler merger and sell Chrysler to Cerberus Capital Management LP.

Seeking overseas growth Newly private Chrysler, now heavily reliant on the U.S. market for its revenues, is moving to expand abroad. It has entered into an agreement with China’s Chery Automobile Co. to produce small cars in China for Chrysler. But Chrysler officials recently said that Chery does not yet have a vehicle that meets the U.S. automaker’s standards. Chrysler officials declined to comment on the talks with GAZ but said the two companies already do some business together.

Chrysler sells four-cylinder, 2.4-liter engines to GAZ, and it sold the Russian firm the tooling to make the previous-generation Sebring sedan, which GAZ will produce in Russia. In addition, GAZ’s partner, Magna, is Chrysler’s biggest supplier. Both companies were interested in Chrysler during the auction of the U.S. automaker earlier this year. Cerberus officials were not available Wednesday to comment on whether GAZ has expressed a more recent interest to invest in Chrysler.