BEIJING Automotive Industry Co said it has inked a pact with Daimler AG to focus on developing Mercedes-Benz models in China with its joint venture that also includes Chrysler LLC, Chairman Xu Heyi said in an online interview.

Analysts said the comment added to market speculation United States car maker Chrysler, which left its tie-up with Daimler last year, is cutting its influence in the three-party venture that may lead to a final withdrawal.

'Beijing Auto and Daimler have reached agreement on the future development of Beijing-Benz Daimler Chrysler Automotive Co Ltd, which will be one of China's top luxury vehicle ventures,' said Xu.

'Chrysler is like a person who walked out of the joint venture,' he said. 'The remaining two shareholders (Beijing Auto and Daimler) are focusing on one brand, and we are working together toward it efficiently.'

BBDC was founded in 2004 with Beijing Auto owning 50 percent, leaving the rest of the holding to be jointly held by its foreign partners.

But since Daimler and Chrysler separated in May last year, changes in the Chinese operations have been in the making.

'The global separation will definitely have an impact on their Chinese operations,' said Zhang Xin, an auto analyst from Guotai Jun'an Securities Co.

'The three-party cooperation may slow the development of both international brands, and there are signals showing Chrysler is losing attention (on the venture).'

Xu said BBDC will boost its annual production capacity to 100,000 units in the future, most of which will be Mercedes-Benz models. It will add a new Benz model, the V212, next year.

Officials from Chrysler China told Shanghai Daily that the auto maker will continue producing cars in the joint venture under a six-year licensing production due to expire in 2010. But it declined to say anything further.

BBDC now makes Benz E-class and C-class sedans as well as Chrysler-branded 300C and Borui sedans.