BAIC Group and Daimler signed a framework agreement to strengthen strategic cooperation in new energy vehicles

On June 1, 2017, Li Keqiang, Premier of the State Council of the People’s Republic of China and Angela Merkel, Chancellor of Germany, witnessed that Beijing Automotive Group Co., Ltd. and its partner – Daimler AG concluded and entered into a framework agreement, which will further strengthen the strategic cooperation between the two sides through investment in new energy vehicles in China.

Xu Heyi, President of the Board of Directors of Beijing Automotive Group Co., Ltd. and Hubertus Troska, Member of the Board of Directors and Head of Business in Greater China of Daimler AG, attended the signing ceremony of strategic cooperation in new energy vehicles held in Berlin, Germany, and signed a framework agreement.

According to the agreement, the two sides will introduce Daimler’s new energy vehicles to Beijing Benz for cooperation based on advantages. BAIC Motor Corporation Ltd. and Daimler will jointly invest in the transformation and upgrading of existing production facilities in Beijing Benz in order to prepare for the introduction of new products. They are committed to continuing to enhance the benchmark for the world’s most competitive automotive industry system. As an important part of the framework agreement, Daimler proposes to invest in Beijing New Energy Vehicles Co., Ltd. subordinated to BAIC Group, in order to strengthen cooperation in new energy vehicles between both sides.

The President Xu Heyi said, “as the representative of Chinese and German auto enterprises, BAIC Group and Daimler AG have made remarkable achievements together over years. The signing is an important step in new energy vehicles for both sides. BAIC Group is one of the earliest enterprises developing new energy vehicles in China, and its pure electric vehicle sales volume has led the Chinese market for many years, which has become a leader in Chinese new energy vehicle industry. Daimler AG has explored new energy vehicles for a long time, and accumulated advanced technical experience. The two sides will play their respective advantages in new energy vehicle technology and market operation for mutual benefit and win-win result, and strive to become a practice benchmark for strategic cooperation between ‘Made in China 2025′ and ‘German Industry 4.0′.”

Mr. Hubertus Troska said, “Localization is the key to Daimler’s sustainable development and future success in China. We continue increasing investment in local R&D, expanding local production scale, and integrating Chinese tastes into the products, so as to make China become the world’s largest market for Mercedes-Benz. Meanwhile, the special thanks shall be given to the Chinese partners cooperating with us. Our strategic cooperation with BAIC has been lasting for 12 years, with continuous expansion of cooperation business and deepening in close cooperation relationship. Today, the signing of the framework agreement opens a new chapter for both sides in new energy vehicles cooperation. China has become the world’s largest new energy vehicle market, and Daimler is committed to contributing to the further development of Chinese electric vehicles.”

About Beijing Benz 

Founded in 2005, Beijing Benz Automotive Co., Ltd. (hereinafter referred to as “Beijing Benz”) is a joint venture enterprise co-built by BAIC Motor Corporation Ltd. and Daimler. After 12 years of development, Beijing Benz has become the world’s most comprehensive Mercedes-Benz base of Daimler. Its products include E-Class, C-Class, GLC SUV, GLA SUV, as well as Mercedes-Benz 4-cylinder and 6-cylinder engines. The sold vehicle types account for two-thirds of the total annual sales volume of Mercedes-Benz in China. As of November 2016, Mercedes-Benz cars produced by Beijing Benz amount to over 1 million. In addition, Beijing Benz has won the title – “The Best Large-scale Manufacturer” awarded by “The Best Factory of the World” Jury. As a major comprehensive base for Mercedes-Benz passenger cars in China, Beijing Benz plays a key role in Daimler’s global development strategy.

About Beijing New Energy Vehicles Co., Ltd 

Founded in 2009, Beijing New Energy Vehicles Co., Ltd. is a new energy company subordinated to BAIC Group, one of the Fortune Global 500 enterprises, and the most influential enterprise producing pure electric passenger cars, with the largest scale, the most complete industrial chain, the largest market sales volume and the most users. With an industrial layout based on China and the world at large, the company is the new energy vehicles enterprise which first obtained new energy vehicle production qualification, first implemented mixed ownership transformation, and first practiced shareholding by employees in state-owned holding enterprises. It has become a model of transformation and upgrading of manufacturing enterprises as well as reform and innovation of state-owned enterprises. BAIC New Energy Vehicles Co., Ltd. has EH, EU, EX, EV and EC five series as well as over 10 brands of pure electric passenger cars. BAIC New Energy Vehicles Co., Ltd. has produced nearly 100,000 vehicles, ranking first in China. And it sooner will be the first new energy vehicles enterprise entering “100,000 club”.