In the presence of Germany’s Chancellor Dr. Angela Merkel and the Chinese Premier Li Keqiang, Daimler AG and its Chinese partner BAIC Motor today announced a strategic framework agreement on further deepening the cooperation within the German-Sino production joint venture Beijing Benz Automotive Co., Ltd. (BBAC). The two companies therefore signed a strategic framework agreement on the investment of RMB 4 billion (more than €500 million) in the further expansion of the Beijing-based engine plant.

The official signing ceremony was attended by Hubertus Troska, Member of the Board of Management of Daimler AG, responsible for Greater China, and Xu Heyi, Chairman of the BAIC Group and its car division BAIC Motor.

Hubertus Troska, Member of the Board of Management of Daimler AG, responsible for Greater China: “Localization is the key to Daimler’s sustainable growth and future success in China. Together with our Chinese partners, we are continuously increasing our local footprint in China.” Troska continues: “This agreement on further investment marks a successful beginning of the second decade of our partnership with BAIC. With our Mercedes-Benz products ‘Made in China, for China’ at BBAC, we are confident in our growth in the world’s largest car market.”

Xu Heyi, Chairman of the BAIC Group and its subsidiary BAIC Motor, stated: “The agreement further strengthens our comprehensive strategic partnership with Daimler. It shows that BBAC has reached new heights in terms of manufacturing and management capabilities. By continuously deepening the close cooperation between our two companies, we will further enhance our joint company’s competitiveness and will set new benchmarks in China’s automotive industry.”

Source: Daimler AG