Daimler, BAIC expand involvement in China joint venture

Daimler and Beijing Automotive Industry Corporation (BAIC) have agreed to expand their cooperation in China. The German automotive company said €2 billion (US$2.9 billion) will be invested in their joint venture, Beijing Benz Automotive Co. Ltd. (BBAC). Dieter Zetsche, chief executive officer (CEO) of Daimler said, “With this framework agreement, we are laying the essential strategic foundations for our long-term and significant participation in the growth of the key market China.” Local passenger car production will be expanded, including the GLK compact SUV and three models of the new generation of Mercedes-Benz premium compact cars. Production capacities for the C-class and E-class vehicles also will be increased. Also planned in this expansion are a new research and development center and a new engine plant with a capacity of 250,000 units. (July 1,2011)