DAIMLERCHRYSLER AG said yesterday its Chinese vehicle manufacturing unit won a business license.

Fujian DaimlerChrysler Automotive Co Ltd, formerly known as DaimlerChrysler Vans China, received a license from the Fujian Provincial Administration for Industry & Commerce on June 8, the world's third largest auto maker said in an statement yesterday.

FJDC is founded by Fujian Motor Group Ltd, DaimlerChrysler and China Motors Corp with a total investment of about US$265 million.

"FJDC is applying for certifications to begin construction of a new manufacturing facility, and expects to start production in mid-2009," the statement said.

Its initial product portfolio will include Mercedes-Benz Vito, Viano and Sprinter transporters at an annual capacity of 40,000 units.

Industry observers said the new company is still subject to changes regarding the name or operations after the global transfer takes place in the third quarter.

US-based Chrysler has quickened its development in China to grab a bigger market share by localizing production and expanding brands.

DaimlerChrysler started making Jeep in China 20 years ago. It also cooperated with Beijing Automotive Industrial Corp to make Mercedes-Benz models and Chrysler 300C models at a plant in Beijing.