Daimler To Create New Chinese Plant With BAIC

Daimler is set to operate another production location in China with its local joint venture partner BAIC.

Daimler and BAIC, operating as Beijing Benz Automotive Co, currently operate a local production hub in Beijing’s Yizguang industrial park. As part of this new 1.5 million euro investment, a production facility currently operated solely by BAIC in Beijing’s Shunyi district will be transferred to BBAC and modified to produce premium Mercedes-Benz models.

The German marque hasn’t said which models it intends to build at the facility but did say that there will be some electric products from the EQ brand tailored to the needs of Chinese customers.

“Local production is a strong pillar of our sustainable development in China. By deepening our cooperation with our local partner BAIC, BBAC will continue playing a key role for Mercedes-Benz in China,” said Hubertus Troska, Member of the Board of Management of Daimler AG, responsible for Greater China.

“This production capacity expansion for BBAC will allow us to meet the expected growing demand for premium passenger cars in China, including for electric vehicles.”

Member of the Divisional Board of Mercedes-Benz Cars, Production and Supply Chain, Markus Schafer, added to this saying, “In 2017, Mercedes-Benz Cars has set the seventh production record in a row, also thanks to our strong growth in China.

“Globally, our plants run at full capacity, which is why we need further production facilities around the globe. BBAC is an integral part of our global production network of Mercedes-Benz Cars. With the new production location and our battery production planned in Beijing, we are progressing well with our electric initiative.”