Volkswagen and DaimlerChrysler are getting hitched. Well, sort of. The two predominately German automakers are not merging, but are in the process of exploring building products for one another. What is coming? Who gets what vehicle? What can all this mean? Read on and I will tell you.

It is official: Volkswagen has decided not to import its microbus "minivan" to the American market. Citing conversion costs and exchange rate differences, VW has elected instead to start selling its own version of Chrysler's popular minivans in the US. Based on the Chrysler Voyager, the new VW minivan has yet to be named but it will be nothing more than a rebadged Voyager. The minivan will fill a glaring hole in the VW line up and keep current owners from departing the company in search of a larger people mover.

DaimlerChrysler [DCX] will benefit by maxing out production of its minivan fleet. In addition, DCX is also studying importing rebadged versions of VW's popular compact Polo to fill a glaring gap in its own line up. The tiny Polo will likely be sold as a Dodge and be the entry level vehicle just below the soon-to-be-released Caliber, a replacement for the Neon. Details are currently sketchy, but the new "Polo" could arrive as a 2007 model.

Yes, VW and DCX aren't getting married, but the two automakers appear to be in the fortunate position to help each other out to the benefit of both. Now, let's just see how consumers react to the rebadged products!

Matthew Keegan

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