An Indian contract auto manufacturing firm has confirmed to just-auto that it is in negotiations with Chrysler about an outsourced manufacturing deal and said it is busy retooling its plant to assemble larger vehicles.
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The head of corporate communications for Argentum Motors, Colonel Bhagwati Prasad Suman, said talks were ongoing and that his firm was still in competition with other auto makers to seal the deal.
Argentum bought the old Daewoo Motors factory at Greater Noida, just outside Delhi, in November 2007 and currently employs 280 workers at the site.
Suman said: “Right now the work is going on to augment the assembly lines which were made to manufacture small cars.
“Soon they would be big enough to handle an SUV. Any foreign car company would save at least 15% in the production cost if we manufacture their vehicles. Early birds would have the best deal as we are ready to work on a cost-to-cost basis.”
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By GlobalDataArgentum is owned by former local Hyundai head BVR Subbu and India’s Spice Jet airline boss Ajay Singh.
The Economic Times of India last week reported Chrysler was interested in Indian contract manufacture of SUV models, such as the Jeep Liberty/Cherokee and Grand Cherokee, and some Dodge lines for sale in India and in North America.
Suman said Argentum was looking actively for contract deals and has a website that will be launched as soon as it finalises a production agreement.
Raghavendra Verma
