26 September 2012

Beijing Benz plant expansion for production of Mercedes-Benz Compact Cars in China

- Daimler and its partners are investing a total of about 3 billion euros in China

Beijing, China - 26 September 2012 - Beijing Benz Automotive Co., Ltd. (BBAC), the Chinese passenger cars joint venture of Daimler AG and its Chinese partner Beijing Automotive Group (BAIC), celebrated an important milestone. Representatives from both partners and numerous guests from politics and authorities attended the ceremony during which the cornerstone for a new section of BBAC’s Beijing plant was laid. Vehicles of Mercedes-Benz’ new generation of compact cars are slated to roll off the production line as of 2014. 

In June 2011, Daimler and BAIC had signed a strategic framework agreement which included, besides an expansion of production capacities at BBAC, future local production of vehicles of the new generation of Mercedes-Benz compact cars for the Chinese market. Construction of a new engine plant for production of 4-cylinder gasoline engines, which was also part of the agreement, has progressed far with production slated to start next year. Also well on track are activities to establish a new R&D center, which will mainly focus on vehicle testing and adaptation as well as R&D activities with suppliers. Investment for these projects amounts to about 2 billion euros and is part of the overall investment program, according to which Daimler and its partners are investing a total of about 3 billion euros in China. 

Local production of Mercedes-Benz passenger cars began in 2006 at the 50/50 joint venture BBAC with the predecessor of the current Mercedes-Benz E-Class. In spring 2008, the Mercedes-Benz C-Class joined local production as the second model. Since May 2010, BBAC has been producing the current E-Class as a long-wheelbase version especially customized to meet the requirements of the Chinese market. Production of the Mercedes-Benz GLK began in December 2011 as the third model line in BBAC’s Beijing plant. 

Source: Daimler AG