Alliances & AcquisitionsElectric Vehicle

Daimler, BAIC will jointly invest five billion RMB in electric vehicles in China

Daimler and BAIC Motor have agreed to jointly invest five billion RMB for Battery Electric Vehicles (BEVs) and battery localization at Sino-German joint venture BBAC. In the presence of German Chancellor Dr. Angela Merkel and Chinese President Xi Jinping, both company partners announced a framework agreement to further deepen cooperation at Beijing Benz Automotive Co., Ltd. (BBAC).

Xu Heyi, Vorstandsvorsitzender der BAIC Group (links) und Hubertus Troska, Vorstandsmitglied der Daimler AG (rechts) unterzeichnen Rahmenvereinbarung. Quelle: Bundesregierung / Guido Bergmann  //  Xu Heyi, Chairman of the BAIC Group (left) and Hubertus Troska, Member of the Board of Management of Daimler AG (right) sign framework agreement. Source: Bundesregierung / Guido Bergman
 Xu Heyi, Chairman of the BAIC Group (left) and Hubertus Troska, Member of the Board of Management of Daimler AG (right) sign framework agreement.

As part of this strategic framework agreement, Daimler and BAIC Motor are preparing to locally produce Battery Electric Vehicles by 2020 at BBAC, and to provide the necessary infrastructure for battery localization using Chinese cells, as well as research and development capacities.

Earlier in June of this year, both partners had signed a framework agreement on further strengthening their strategic collaboration through investments for New Energy Vehicles (NEVs) in China. As part of the investment agreement, Daimler announced its intention to acquire a minority share in Beijing Electric Vehicle Co., Ltd. (BJEV), a subsidiary of the BAIC Group, with the purpose of strengthening strategic collaboration with BAIC in the NEV sector.

Damler is carrying out with its plans to be ‘electric offensive’ and globally, more than ten new Mercedes-Benz electric passenger cars are scheduled to be launched by 2022. Ten billion euros will be invested in the expansion of the electric fleet over the next years, and the new electric vehicles will be produced within Mercedes-Benz Cars production network, with plants on four continents. Overall, Daimler is investing around one billion euros in the global production of batteries, estimating that by 2025 electric vehicles will account for between 15 and 25 percent of the total unit sales of Mercedes-Benz.

Related news:

Daimler decides to go ‘electric offensive’, lays foundation of second Lithium-ion battery plant

 

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