Daimler to expand local Mercedes-Benz production with its partner in China

  • Daimler and BAIC announce plans to expand local productionof Mercedes-Benz vehicles due to expected market demand in China
  • Local production hub Beijing Benz Automotive Co. Ltd. (BBAC)to operate additional production location
  • Investment of over 11.9 billion RMB to prepare BBAC for furthergrowth opportunities in the Chinese automotive market
  • 2nd Beijing production location to facilitate complementarycapacities for future new Mercedes-Benz models “Made in China,for China”, including battery-electric vehicles

Seeing further growth potential in the Chinese automotive market, Daimler and BAIC today announced plans to further expand local production for the Mercedes-Benz brand at their joint venture, Beijing Benz Automotive Co. Ltd. (BBAC). Through an investment totaling over 11.9 billion RMB (about 1.5 billion euros) by Daimler and BAIC, BBAC will prepare to operate another production location for high-quality premium vehicles, in addition to its established local production hub in Beijing’s Yizhuang industrial park. As part of the investment, a BAIC production facility located in the capital city’s Shunyi district will be transferred to BBAC, and modified to facilitate complementary production capacities for Mercedes-Benz cars. Furthermore, both partners will invest into new product localizationat the future second Beijing-based Mercedes-Benz production facility.

Together with BAIC, Daimler continues developing BBAC into one of the most pioneering manufacturing hubs in Daimler’s global production network. The expansion of localization announced today will allow Daimler to respond to increasing market demand with local models tailored to Chinese customers’ needs, including electric products from Mercedes-Benz’s EQ brand. Daimler is dedicated to furthering New Energy Vehicle (NEV) developmentin China, already the largest NEV market globally, as part of the company’s “Made in China, for China” commitment.

“Local production is a strong pillar of our sustainable development in China. By deepeningour cooperation with our local partner BAIC, BBAC will continue playing a key role for Mercedes-Benz in China,” said Hubertus Troska, Member of the Board of Management of Daimler AG, responsible for Greater China. “This production capacity expansion for BBACwill allow us to meet the expected growing demand for premium passenger cars in China, including for electric vehicles.”

“With over a decade of remarkable achievements, BBAC stands as evidence of the strong collaboration between BAIC and Daimler,” said Xu Heyi, Chairman of the BAIC Group.“As a model of Sino-German cooperation, BBAC has set successive benchmarks in terms of technology and quality standards. Going forward, both partners will continue to support BBAC as it provides additional, attractive products, contributing to the development of the Chinese automotive industry.”