THE UK operations of Mercedes-Benz and Chrysler Jeep Imports are merging to create DaimlerChrysler (UK). The new company will come into effect from January 1 and be led by Paul Halata, managing director of Mercedes-Benz UK.

The development follows confirmation that DaimlerChrysler was taking over responsibility for the import and distribution activities of both the Chrysler and Jeep brands from Inchcape. Chrysler's UK headquarters in Dover is being closed and DaimlerChrysler will use Mercedes-Benz headquarters in Milton Keynes. Chrysler's 105 staff have been offered jobs within the newly merged company.

'The UK is an important strategic market for DaimlerChrysler and this move follows the group's overall aim of taking greater control of our destiny,' said Halata. He will be joined on the board by a Chrysler representative, although the full management structure has yet to be decided.