BERLIN – Daimler AG and its Chinese partner Beijing Automotive Industry Corp. (BAIC) signed an agreement on the further expansion of the production capacity of their joint venture Beijing-Benz Automotive Co., Ltd. (BBAC) on March 28 in Berlin, Germany, according to a company news release.
The official signing ceremony was attended by Hubertus Troska, Member of the Board of Management of Daimler AG responsible for China, and Xu Heyi, Chairman of BAIC.
With this agreement, Daimler will expand business activities in China and strengthen strategic partnership with BAIC. Of the €4 billion being invested in BBAC, €1 billion is to be used solely for the expansion of local car and engine production capacity until 2015.
The existing production capacity at BBAC for the C-Class, the E-Class and the GLK will be more than doubled to over 200,000 units in 2015. The compact GLA will go into production at BBAC next year.
In 2013, BBAC put the first plant for Mercedes-Benz car engines outside Germany into operation. The 4- and 6-cylinder engines are used in the locally produced cars and the vans built by Fujian Benz Automotive Co., Ltd. (FBAC).
A new R&D center will go into operation at BBAC this year.