BAIC Motor Corporation and Daimler AG will co-invest more than RMB 11.9 billion (US$1.9 billion) to expand production in China to meet the demands of the future market there.
The new production base of their joint venture, Beijing Benz Automotive Co., Ltd. (BBAC), will manufacture various Mercedes-Benz products in China including new energy electric vehicles, and will be equipped with the complete high-quality premium automobile manufacturing system to further improve the overall production capacity of Beijing Benz.
In July 2017, Daimler and BAIC announced a framework agreement to deepen cooperation at BBAC. The two companies pledged to co-invest a total of RMB 5 billion (about US$790 million) in the production of Battery Electric Vehicles (BEVs) under the Mercedes-Benz brand at the local production hub of BBAC in Beijing. (Earlier post.)
As part of this strategic framework agreement, the two companies said they would locally produce Battery Electric Vehicles by 2020 at BBAC, and provide the necessary infrastructure for battery localization using Chinese cells, as well as research and development capacities.
Beijing Benz was founded in August 2005 and integrates R&D, engine and whole vehicle production, as well as sales and post-sales services.