Daimler, BAIC plan additional joint projects

Germany’s Daimler AG said it has signed a letter of intent with China’s Beijing Automotive Group Co. Ltd. to explore additional joint projects and deepen the strategic partnership between the two companies. “Both sides are going to evaluate additional initiatives at corporate level as well as to support each other with further investments,” Daimler said in a statement. “BAIC and Daimler will jointly analyze the possibilities of technological cooperation as well as cooperation in the field of research and development of new energy vehicles,” it said. Earlier this year, Daimler and BAIC agreed to invest €2 billion (US$2.7 billion) in the joint venture Beijing Benz Automotive Co. Ltd. The joint-venture is currently producing Mercedes-Benz C-Class and E-Class sedans. It will add the GLK compact sports-utility-vehicle this year and three Mercedes-Benz compact cars. By 2013, a new engine plant will produce four-cylinder gasoline engines, which will be used in locally produced Mercedes-Benz passenger cars and vans. A new research and development center also will be established, which will mainly focus on vehicle testing and adaptation. (November 2, 2011)