DaimlerChrysler has begun talks with Chinese officials to begin assembling Mercedes C-Class and E-Class luxury cars in a joint venture with a local partner, people familiar with the matter told the Wall Street Journal.

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The paper said the sources told it that the car maker expects to have an agreement in place later this year, and hopes to set up a plant where Chinese workers would build the vehicles from kits shipped from Germany.


DC eventually expects to assemble 20,000 to 30,000 Mercedes cars a year in China, the WSJ report said.

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