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Daimler and BYD Establish 50:50 Electric Vehicle JV in China

Daimler AG and BYD signed a contract creating a 50:50 research and development technology joint venture for the development of an electric vehicle in China, with the new company using the Shenzen BYD Daimler New Technology.

The two partners will invest $87.8 million to use as registered capital for the newly created business. The new generation of EVs developed by the joint venture will rely on Daimler’s know how in electric vehicle architecture and safety as well as BYD’s battery technology e-drive systems.

The vehicle will be marketed under its own dedicated brand, which will also be jointly owned by Daimler and BYD.

The move follows the signing of a memorandum of understanding on March 1, which saw engineers, designers and other executives begin the development of the new EV project.

"Our new joint venture is well positioned to make the most of the vast potential of electric mobility in China. We are fortunate to have excellent joint venture partners in China and the establishment of this research and technology center with BYD adds another dimension to our growing presence in this important market," said Dieter Zetsche, Chairman of the Board of Management of Daimler AG.

"Together with Daimler we are making excellent progress identifying opportunities to utilize the strengths of both companies to create a new brand of electric cars for China. This is a unique and exciting initiative and together we are pushing hard to bring this new electric vehicle to market as soon as possible," said Wang Chuanfu, Chairman and President of BYD Company Limited.


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