Daimler and Chinese partner BYD will restructure their DENZA joint venture with the German conglomerate to now hold a 10 percent stake in the venture.
Daimler and BYD have been partners in the Chinese market since 2010 when they signed a 50:50 research and technology joint venture, BYD Daimler New Technology Co, producing and marketing new energy vehicles under the DENZA brand.
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The two companies have now signed an equity transfer agreement to realign the structural setup of the DENZA joint venture, with Daimler to hold a 10 percent equity stake while BYD will hold the remaining 90 percent stake.
No reason has been given as to why the structure of the joint venture has been changed but Daimler and BYD say they both remain committed to their long-term partnership and aim to accelerate the development of DENZA in China’s NEV market. Next year, DENZA plans to introduce a host of new models.
Separately, both Daimler and BYD have important electrification plans. The German car manufacturer plans to transition to all-electric power by the end of this decade where market conditions allow. It currently sells four electric Mercedes-EQ models in China, three of which are produced locally. Similarly, BYD has employed an important EV strategy and has sold its new energy vehicles in more than 300 cities across 50 countries and six continents. It confirmed in a statement that it will cooperate with Daimler and other partners to transform energy consumption in the mobility and transportation sectors with the aim of cooling the earth by 1 degrees Celsius.
