Daimler to boost China production capacity
05/03/2018
It will be a joint venture with Chinese automotive group BAIC, with total investment in the new facility totalling more than 11.9 billion yuan (around €1.5 billion).
A BAIC production facility in Beijing’s Shunyi district will be transferred to Daimler subsidiary Beijing Benz Automotive Co. (BBAC), which already operates a production hub in Yizhuang industrial park. The facility will be modified to facilitate the production of Mercedes-Benz cars.
Daimler has said a second Beijing production location will allow it to respond to increasing market demand and to tailor local models to the needs of Chinese customers. This will include furthering its development of New Energy Vehicles (NEV) in China as part of its “Made in China, for China” strategy.
Hubertus Troska, Daimler board member responsible for Greater China, explained: “Local production is a strong pillar of our sustainable development in China. By deepening our cooperation with our local partner BAIC, BBAC will continue playing a key role for Mercedes-Benz in China. This production capacity expansion for BBAC will allow us to meet the expected growing demand for premium passenger cars in China, including for electric vehicles.”
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