German automaker Daimler and its Chinese partner BAIC Group have signed a new framework agreement for the production of electric vehicles.
The agreement is focused on two significant investments. The first part is that Daimler will invest in one of BAIC’s subsidiary Beijing Electric Vehicles (BJEV).
And the second part of the investment is to upgrade the current production facilities at the joint venture of the two companies, Beijing Benz Automotive (BBAC).
Both these investments are expected to pave the way for next generation new energy vehicles, particularly electric vehicles.
According to Daimler, the framework agreement is a new chapter in the cooperation between the two companies in the development of new energy vehicles.
Currently, China has grown into one of the largest markets for electric vehicles in the world and the German automaker plans to tap the huge potential in the country in the coming years.
The collaboration agreement was signed Berlin in the presence of presence of German Chancellor Angela Merkel and Chinese Premier Li Keqiang, by the officials of Daimler and its Chinese partner BAIC Group.
Daimler Management Board member, responsible for Greater China Hubertus Troska said: “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.”
BAIC Group 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’.”
