German automaker Daimler is planning to invest about EUR2bn in China, as part of its efforts to double capacity at its Chinese joint venture, Beijing Benz Automotive, to 200,000 units per year over the next two years.
The latest investment will go towards construction of the automaker's first fully fledged powertrain manufacturing facility outside Germany and to build a new car plant.
Daimler Board of Management member Hubertus Troska was quoted by the Financial Times as saying that the company's worldwide strategy, to be number one, would mainly be supported by improving its position in China.
"The quality level that we are putting in here will be like no other engine plant that we have outside Germany and is to the same level as our German plants," Troska said.
The new engine plant, which is expected to commence operations in fourth quarter of 2013, will be used to export engine components such as crankshafts, cylinder heads and engine blocks to facilities in Germany from 2014.
Daimler, which aims to sell over 1.4 million cars in 2013, is planning to unveil its upgraded E-class sedan and the new S-class sedan in China.
