Beijing Automotive to develop own brand

Beijing Automotive Industry Corp. is in talks with Daimler-Benz, its 50-50 joint-venture partner for the assembly of mainland-distributed Mercedes-Benz vehicles, to develop cars under its own label. “The co-operation between global and local carmakers is encouraged by the government and other carmakers should follow,” said Li Gang, an official from the National Development and Reform Commission who oversees the vehicles and vessels division. To survive in the congested domestic market, Beijing Automotive plans a three-pronged strategy involving the development of own-brand passenger cars, commercial vehicles and a joint venture with South Korea’s Hyundai and Daimler-Benz. Guangzhou Honda, a 50-50 joint venture between Hong Kong-listed Denway Motor and Honda Motor, was the first carmaker to unveil a plan to build own-brand models last July, investing 2 billion yuan (US$286.1 million) into the scheme. (May 12, 2008)