In the presence of German Chancellor Dr. Angela Merkel and Chinese Premier Li Keqiang, Daimler AG and its Chinese partner BAIC Group today signed a framework agreement on further strengthening their strategic collaboration through investments for New Energy Vehicles in China.
Hubertus Troska, Member of the Board of Management of Daimler AG, responsible for Greater China, and Xu Heyi, Chairman of the BAIC Group attended the signing ceremony held in Berlin. The framework agreement will center on two significant investments. As one part of this investment agreement, Daimler intends to acquire a minority share in Beijing Electric Vehicle Co., Ltd. (BJEV), a subsidiary of the BAIC Group, with the purpose of strengthening strategic collaboration with BAIC in the NEV sector.
As another part of the framework agreement, investment will also be placed in the upgrade of the current production facilities at their joint venture Beijing Benz Automotive Co., Ltd. (BBAC), paving the way for the introduction of New Energy Vehicle production.
“Localization is the key to Daimler’s sustainable growth and future success here in China. We have been intensifying local research and development, as well as local production, to highlight the preferences of our Chinese customers. They have made this the largest market worldwide for Mercedes-Benz, and this is especially thanks to the strength of our Sino-German cooperation with local partners,” said Hubertus Troska. “This year marks the 12th year of our close partnership with BAIC, and we have deepened our Sino-German collaboration by continuously expanding into new business areas. The framework agreement signed today marks a new chapter of our cooperation in terms of New Energy Vehicles. China today is already the world’s largest market for NEVs, and Daimler is committed to contributing to the further development of electric mobility in this country.”
Chairman Xu Heyi said: “As outstanding representatives of the Chinese and German automotive industries, BAIC and Daimler have for years worked hand in hand with remarkable success. Today’s agreement is an important step by both sides towards the future of New Energy Vehicles. As the forerunner in developing New Energy Vehicles in China, BAIC’s sales of pure electric vehicles have lead the domestic industry. Daimler too has rich experience in New Energy Vehicles, having over the years accumulated advanced technical expertise. Going forward, the two sides will make use of these respective advantages in New Energy Vehicle technology and market operations to achieve win-win, mutually beneficial collaboration, as we both strive to become a benchmark of strategic cooperation between ‘Made in China 2025’ and Germany’s ‘Industry 4.0’.”
Source: Daimler AG