17 December 2012

Daimler establishes integrated sales company for cars in China

- Sales activities for imported & locally-produced cars under one roof 
- Beijing Mercedes-Benz Sales Service Co., Ltd. is a 50:50 JV with BAIC 
- China is a key element of Mercedes-Benz 2020 growth strategy 
- Daimler plans to sell 300,000 cars in China in 2015

Stuttgart/Germany/Peking/China - 17 December 2012 - Daimler has reached a crucial milestone in growth market China: The establishment of Beijing Mercedes-Benz Sales Service Co., Ltd. means that all sales activities for imported and locally produced Mercedes-Benz cars will now be combined under one roof. The new company is a 50:50 joint venture with Daimler’s strategic partner, Beijing Automotive Group (BAIC). 

China is a key element of our Mercedes-Benz 2020 growth strategy,” stated Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars. “In order to consistently implement our growth strategy in this important market, we have also added a Board of Management position for China under the leadership of Hubertus Troska. With the establishment of the new sales company, we are now increasing the effectiveness of our sales organization and setting a course for long-term and sustainable growth.” 

The new sales company, Beijing Mercedes-Benz Sales Service Co., Ltd., combines the functions of sales & marketing, aftersales, expansion of dealer network, used-car and fleet-car sales, as well as dealer and workshop training for Mercedes-Benz cars in China, in a single integrated organization. Previously, there were two sales channels – one for imported and one for locally-produced cars. As an important step towards the integrated organization, Daimler had in the middle of this year already increased its share of the import company Mercedes-Benz (China) Ltd from 51 to 75 percent. 

Nicholas Speeks, President and CEO of Mercedes-Benz (China) Ltd, will become the CEO of the new sales company. 

Daimler plans to sell 300,000 cars in China in 2015, about two thirds of which will be from local production. Daimler has already initiated key activities this year for long-term and sustainable growth in China within the framework of the “China Sales Initiative 2015” program. 

The dealer network is to grow by about 50 new dealerships each year – in particular outside the major megacities. 

In addition, progress is being made with the expansion of local production: In a new engine plant, 4-cylinder gasoline engines will be produced as of 2013 for use in locally-produced Mercedes-Benz cars and vans. Existing capacities for the C-Class, the GLK, and the long-wheelbase E-Class will be increased in line with market demand from currently just over 100,000 vehicles, with 2014 seeing the addition of the new-generation Mercedes-Benz compact cars. In this context, the steady expansion of the Chinese supplier base will leverage cost-cutting potential. 

Source: Daimler