Germany’s Daimler and its Chinese joint venture partner BAIC Motor Corporation have agreed to upgrade the Mercedes-Benz factory in Beijing to make electric cars.
Daimler signed the framework agreement to upgrade the Beijing Benz Automotive Co., Ltd. (BBAC) plant to make New Energy Vehicles (the Chinese terminology for low-emission vehicles, which include hybrid and electric cars) at a signing ceremony in Berlin, Germany, last week, attended by German Chancellor Angela Merkel and Chinese Premier Li Keqiang.
“China today is already the world’s largest market for NEVs, and Daimler is committed to contributing to the further development of electric mobility in this country,” said Hubertus Troska, Daimler’s board member in charge of China.
Daimler also agreed to acquire a minority stake in Beijing Electric Vehicle Co., Ltd. (BJEV), a subsidiary of the BAIC Group, to enhance their collaboration in new energy vehicles. BJEV was established in 2009 by the BAIC Group and other shareholders as a development platform for New Energy Vehicles. It focuses on research and development, production, and sales and services for New Energy Vehicles and core NEV components.