Photo: Daimler AG
Last week, one of the most important steps in the upcoming Mercedes-Benz expansion into China was made, with the three-pointed star signing to effectively more than double their car production in the Middle Kingdom until 2015.
The deal was signed last week in Berlin, in the presence of Germany's Chancellor Angela Merkel and the Chinese State President Xi Jinping.
The agreement is obviously made between Daimler AG and their Chinese partners from Beijing Automotive Industry Corporation (BAIC Group).
“The steady expansion of local production and the continuous deepening of the cooperation with our Chinese partners are key elements of our China strategy,” said Hubertus Troska, Member of the Board of Management of Daimler AG responsible for China. “The rapid development at BBAC, which we are pushing forward systematically together with BAIC, is an excellent example of a successful Sino-German industry partnership. With the agreement we have signed today, we are laying the groundwork for ongoing sustainable profitable growth in China.”
Of the four billion Euros that Daimler AG is investing in the Beijing Benz Automotive Co., Ltd (BBAC) joint venture between Mercedes-Benz and the BAIC Group, one billion Euros specified in the recently signed agreement will be used solely for the expansion of car and engine production capacity until next year.
The production facilities that BBAC currently has in China will be more than doubled to over 200,000 units per year in 2015, with cars like the C-Class W205 long wheelbase, E-Class W212 long wheelbase, GLK X204 and the recently-released GLA X156 crossover/SUV to make up the entire local lineup.
Both Mercedes-Benz and the BAIC Group have been involved since 2003 in a long-term strategic partnership, with Daimler AG buying a 12 percent stake in the BAIC Motor car division since back in November 2013.
The agreement is obviously made between Daimler AG and their Chinese partners from Beijing Automotive Industry Corporation (BAIC Group).
“The steady expansion of local production and the continuous deepening of the cooperation with our Chinese partners are key elements of our China strategy,” said Hubertus Troska, Member of the Board of Management of Daimler AG responsible for China. “The rapid development at BBAC, which we are pushing forward systematically together with BAIC, is an excellent example of a successful Sino-German industry partnership. With the agreement we have signed today, we are laying the groundwork for ongoing sustainable profitable growth in China.”
Of the four billion Euros that Daimler AG is investing in the Beijing Benz Automotive Co., Ltd (BBAC) joint venture between Mercedes-Benz and the BAIC Group, one billion Euros specified in the recently signed agreement will be used solely for the expansion of car and engine production capacity until next year.
The production facilities that BBAC currently has in China will be more than doubled to over 200,000 units per year in 2015, with cars like the C-Class W205 long wheelbase, E-Class W212 long wheelbase, GLK X204 and the recently-released GLA X156 crossover/SUV to make up the entire local lineup.
Both Mercedes-Benz and the BAIC Group have been involved since 2003 in a long-term strategic partnership, with Daimler AG buying a 12 percent stake in the BAIC Motor car division since back in November 2013.
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