Daimler and BAIC sign framework agreement strengthening collaboration in new energy vehicles; Daimler investment

Daimler and BAIC sign framework agreement strengthening collaboration in new energy vehicles; Daimler investment

1 June 2017

In the presence of German Chancellor Dr. Angela Merkel and Chinese Premier Li Keqiang, Daimler AG and its Chinese partner BAIC Group signed a framework agreement on further strengthening their strategic collaboration through investments for New Energy Vehicles in China.

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, the current production facilities at their joint venture Beijing Benz Automotive Co., Ltd. (BBAC) will be upgraded, paving the way for the introduction of New Energy Vehicle production.

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.

—Hubertus Troska, Member of the Board of Management of Daimler AG, responsible for Greater China

Beijing Benz Automotive Co., Ltd. (BBAC), a joint venture between Daimler and BAIC Motor, was established in 2005. In terms of land size, BBAC is the largest Mercedes-Benz passenger car production hub worldwide for Daimler, producing the C-Class, E-Class, GLA and GLC, as well as Mercedes-Benz 4- and 6-cylinder engines.

In 2016, BBAC achieved considerable success, with locally produced models accounting for over two-thirds of Mercedes-Benz’s total sales in China. In November 2016, BBAC’s total local production output passed the 1,000,000-unit mark, and was furthermore recognized by the “Factory of the Year” jury in the “ Excellent Large Series Assembly” category. As the primary local production base for Mercedes-Benz vehicles in China, BBAC plays a key role in Daimler’s overall global development strategy and production network.

Beijing Electric Vehicle Co., Ltd. (BJEV) was established in 2009 by the BAIC Group and other shareholders as a development platform for New Energy Vehicles. As one of China’s leading pure electric vehicle manufacturers, BJEV’s primary business scope covers research and development, production, and sales and services for New Energy Vehicles and core NEV components.

To date, the company’s product portfolio covers five major series of electric vehicles, the EC, EH, EU, EV and EX series, which comprise more than ten electric vehicle passenger car models.

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