Norkis defers plan to produce Chrysler autos

Norkis Automotive Resources Corp. (NARC) is delaying its plan to go into the full production of Chrysler vehicles until 2002.

In a request filed with the Board of Investments (BOI), NARC asked that its authority to import 500 semi knocked-down (SKD) units of Chrysler models be extended until March 2001 pending the approval of its request for the authority to import another 7,000 SKD units.

In the request, NARC also asked for the extension of the 18-month phasing-in period of full completely knocked-down (CKD) operations from August 2000 to February 2002.

The import authority covers all registered Chrysler brands – the Chrysler Jeep, Cherokee, Grand Caravan, Dakota pickup, Jeep Wrangler, Dodge Durango (both two and four-wheel drive models), Neon Base 200 cc and the Stratur 2000 cc.

Documents reveal that NARC has been authorized to import 500 SKD units as early as Sept. 30, 1998 as long as it could guarantee that it could ensure full CKD production by the end of the committed 18-month period.

Since then, the import authority has been extended several times. The last import authority was issued in July 2000 covering 260 units of SKD Chrysler vehicles. This authority was valid until August 2000.

To date, however, BOI documents show that only 271 units of the 500 units approved were imported using this import authority, giving a balance of 229 units that have yet to be imported.

Because its production schedule had been delayed, NARC now wants to be allowed to import 1,000 SKD units in 2000, 2,500 SKD units in 2001 and 3,500 units in 2002. At the end of the period, the company would have imported a total of 7,000 SKD units.

If allowed by the BOI, NARC could begin to assemble these Chrysler models and reach full production stage by 2002.

NARC is a subsidiary of Transfarm and Co. Inc. which transferred the registration of the Chrysler models to NARC when the company was spun off early this year. Chrysler tied up with Transfarm in 1997 and the transfer effectively dissolves the partnership between the two.

Chrysler earlier said that as a marketing strategy, it will introduce only top of the line models, saying that it had no intentions of competing head-on with other car assemblers.

The Chrysler sports utility vehicle (SUV) models – which are slowly evolving as an alternative vehicles to sedans – include the Cherokee, Voyager and Durango. Transfarm has recently been given the green light to import 500 units of Chrysler light commercial vehicles (LCVs) Caravan and Jeep Cherooke at preferential tariffs under the regulated semi knocked-down (SKD) form.