Daimler-Chrysler project by year-end
By Imran Ayub
KARACHI: The world auto giant Daimler-Chrysler is likely to kick off $5.85 billion project by the end of 2006 for starting production of Mercedes-Benz trucks, both commercial and military, buses and Mercedes cars to create a vendor industry in Pakistan.
According to a senior official, two groups - Daimler-Chrysler and Coastal Group - had been working closely with the institutions concerned with an aim to start the project within next few months.
“We can’t speak anything on behalf of investors,” said Muhammad Jehangir Bashar, Secretary, Board of Investment (BoI). “But we all are sure that it’s a very serious plan of investors and is likely to be initiated by the end of this year (2006).”
He said that both the groups were continuously working on the proposed investment plan with the local institutions including the BoI and authorities concerned. However, he said, it was a little bit early to give the exact month for the start of the project.
The government last month announced the plan of Daimler-Chrysler and Coastal Group to invest $5.85 billion in Pakistan by starting production of Mercedes-Benz trucks, both commercial and military, buses and Mercedes cars of various types to create a vendor industry.
As per the announced plan, Coastal Group would make all the financial investment in the project, while Daimler-Chrysler would transfer technology. A 1,200-acre land near Sheikhupura has been offered by the government for the production plant, which would create 5,000 jobs directly and indirectly.
Industry players and analysts see the foreign investment in the particular area as a fresh windfall for the growing local auto industry, which may inspire others to mark Pakistan to expand their business.
“Daimler-Chrysler seems eyeing Central Asian and Afghan market to export its products after manufacturing in Pakistan,” said Farhan Aziz Khan, an analyst at Noman Abid and Company Limited, a local brokerage house.
He said after the revised tariff structure announced by the Engineering Development Board, Pakistan offered the most lucrative business for the auto manufacturing companies across the world.
The EDB announcement last week rationalised the duty structure on off high-way dumpers and other trucks of five tonnes and above capacity.
The fresh structure reduces the duty rate of trucks of five tonnes and above capacity to 40 per cent and that on their CKD kits to 10 per cent.
Similarly, dump trucks and trailers for prime movers have also been placed in the same duty slab while customs duty on the import of prime movers has been reduced to 15 per cent and it has been exempted on their CKD kits to the extent of non-indigenised parts.
Farhan sees the foreign project as the huge investment plan by Daimler-Chrysler, which he says would more work as assembling shop for its export-focussed production.
“Daimler-Chrysler is likely to attract military-based production coupled with good potential market offered by Pakistan where local capacity is as low as 3,000 a year,” he said.
The German auto giant Daimler-Benz AG in 1998 announced the largest industrial merger in the history with the Chrysler Corporation of the United States. The new company, called Daimler-Chrysler, is the world’s fifth largest carmaker with combined revenues of around $130 billion and a combined operating profit of around $7 billion with a combined workforce of more than 420,000 employees.
http://www.thenews.com.pk/daily_detail.asp?id=15143
Full Version: Daimler-chrysler Project By Year-end
5+ Billion US investment in Pakistan !
How I really wish this can come through.
How I really wish this can come through.
QUOTE(must7 @ Jul 12 2006, 06:14 AM) [snapback]779610[/snapback]
5+ Billion US investment in Pakistan !
How I really wish this can come through.
must7,
Why do you doubt it?
Peace
QUOTE(Ajgir @ Jul 12 2006, 07:42 AM) [snapback]779641[/snapback]
must7,
Why do you doubt it?
Peace
I think there has never been a one-time investment of this much from a single company as of yet.
There was a $10 or $30 billion dollar deal done by emaar and dubai world recently, this is all part of the arab strategy to relocate alot of its investment to new, emerging markets in asia, pakistan btw is the most important country to these arab shiekdoms strategically, after the US ofcourse! 
$5bn by daimler chrysler is a good investment aswell though,.
$5bn by daimler chrysler is a good investment aswell though,.
$5bn USD is no friggin joke, people never head of this kind of investment since Pakistan's golden-era in the 1950s and 1960s!
I have heard A LOT about the land mafia in Karachi and if this is true, then I am truely fukin pissed off!!! 
PPP sees land grabbing plan in garb of investment
http://66.201.122.226/2006/06/17/nat4.htm
By Sher Baz Khan
ISLAMABAD, June 16: PPP Senator Enver Baig has alleged that the government has not signed any agreement with Daimler-Chrysler or the London taxis about setting up a cab manufacturing plant, but is supporting a land mafia led by US nationals to grab expensive land in Karachi and Lahore in the name of investment. “I have checked with the German embassy early this morning and they said they don’t know anything about the $5.8 billion Daimler-Chrysler investment in Pakistan. Similarly, the government does not posses any proof which could show that Dawood Khan, a US national, has entered into an agreement with the London taxis to instal their manufacturing plant in Karachi,” Mr Baig said at a news conference at the PPP media centre here on Friday.
The PPP senator challenged the government to make public any document about such an agreement by ‘tomorrow’.
He alleged that Prime Minister Shaukat Aziz had signed the black cab contract on ordinary papers while presiding over the Economic Coordination Committee meeting after receiving a phone call from an influential personality and had not even seen the documents relating to the agreement between Dawood Khan and the London taxis.
He warned the government against supporting the land mafia as these scams could lead to arrests of some people.
The PPP, he said, would move the court of law and the National Accountability Bureau against the land grabbing deals.
He said that according to his information, 800 acres of land in Gharo, near Karachi, had been provided for the black cab plant and not 300 acres as stated by Minister of state for Privatisation and Investment Umar Ahmed Ghumman.
Similarly, 1,200 acres of public land on Motorway (near Shaikhupura) was being acquired for Daimler-Chrysler’s manufacturing plant. The government was acquiring land from people at much below the market price.
The senator said that Mr Ghumman himself had said at a news conference that he was a US citizen and had not gone even once to his constituency (Sialkot) since he won his seat for the National Assembly and that he would quit politics the moment Gen Pervez Musharraf left.
“Can anyone imagine how big a land scam is this keeping in view the prices of land in Karachi and Lahore? The government is supporting this land mafia in the same way it is supporting the stock exchange mafia who have inflicted billions of rupees losses on small investors,” Mr Baig observed.
He said Suzuki, which produced 20,000 cars every year, had installed its plant on 65 acres in Karachi, Toyota on 50 acres in Karachi and Honda on 65 acres in Lahore. “So, how come the government has provided 800 acres to the London taxis.
He said the advertisements which appeared in various newspapers for London taxis on June 7, included tailor-made specifications to make only Dawood Khan win the contract.
He said no party could meet the specifications and terms and conditions of the advertisements which also included acquisition of land in 15 days as the deadline for the deal was June 22.
“Mr Ghumman has himself accepted that Dawood Khan was very angry when advertisements appeared in the newspapers, which shows that the government had finalised the deal with him much before the advertisements appeared and Mr Khan considered it a violation of the agreement”, Mr Baig said.
About the Daimler-Chrysler investment, Mr Baig said that a man from the United Arab Emirates and a local partner, who were awarded the contract had signed no agreement about a joint-venture with Daimler-Chrysler. “Both persons were here to grab the land provided to them for the installation of a manufacturing plant.”
QUOTE
PPP sees land grabbing plan in garb of investment
http://66.201.122.226/2006/06/17/nat4.htm
By Sher Baz Khan
ISLAMABAD, June 16: PPP Senator Enver Baig has alleged that the government has not signed any agreement with Daimler-Chrysler or the London taxis about setting up a cab manufacturing plant, but is supporting a land mafia led by US nationals to grab expensive land in Karachi and Lahore in the name of investment. “I have checked with the German embassy early this morning and they said they don’t know anything about the $5.8 billion Daimler-Chrysler investment in Pakistan. Similarly, the government does not posses any proof which could show that Dawood Khan, a US national, has entered into an agreement with the London taxis to instal their manufacturing plant in Karachi,” Mr Baig said at a news conference at the PPP media centre here on Friday.
The PPP senator challenged the government to make public any document about such an agreement by ‘tomorrow’.
He alleged that Prime Minister Shaukat Aziz had signed the black cab contract on ordinary papers while presiding over the Economic Coordination Committee meeting after receiving a phone call from an influential personality and had not even seen the documents relating to the agreement between Dawood Khan and the London taxis.
He warned the government against supporting the land mafia as these scams could lead to arrests of some people.
The PPP, he said, would move the court of law and the National Accountability Bureau against the land grabbing deals.
He said that according to his information, 800 acres of land in Gharo, near Karachi, had been provided for the black cab plant and not 300 acres as stated by Minister of state for Privatisation and Investment Umar Ahmed Ghumman.
Similarly, 1,200 acres of public land on Motorway (near Shaikhupura) was being acquired for Daimler-Chrysler’s manufacturing plant. The government was acquiring land from people at much below the market price.
The senator said that Mr Ghumman himself had said at a news conference that he was a US citizen and had not gone even once to his constituency (Sialkot) since he won his seat for the National Assembly and that he would quit politics the moment Gen Pervez Musharraf left.
“Can anyone imagine how big a land scam is this keeping in view the prices of land in Karachi and Lahore? The government is supporting this land mafia in the same way it is supporting the stock exchange mafia who have inflicted billions of rupees losses on small investors,” Mr Baig observed.
He said Suzuki, which produced 20,000 cars every year, had installed its plant on 65 acres in Karachi, Toyota on 50 acres in Karachi and Honda on 65 acres in Lahore. “So, how come the government has provided 800 acres to the London taxis.
He said the advertisements which appeared in various newspapers for London taxis on June 7, included tailor-made specifications to make only Dawood Khan win the contract.
He said no party could meet the specifications and terms and conditions of the advertisements which also included acquisition of land in 15 days as the deadline for the deal was June 22.
“Mr Ghumman has himself accepted that Dawood Khan was very angry when advertisements appeared in the newspapers, which shows that the government had finalised the deal with him much before the advertisements appeared and Mr Khan considered it a violation of the agreement”, Mr Baig said.
About the Daimler-Chrysler investment, Mr Baig said that a man from the United Arab Emirates and a local partner, who were awarded the contract had signed no agreement about a joint-venture with Daimler-Chrysler. “Both persons were here to grab the land provided to them for the installation of a manufacturing plant.”
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