Business
08:32, 26-Feb-2018
BAIC Motor, Daimler plan $1.9 billion new production base in China
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Baic Motor Corporation and Daimler AG are planning to co-invest more than 11.9 billion yuan ($1.88 billion) to build a new local production base for their joint venture, Beijing Benz Automative, Baic said on Sunday.
The two will invest more than 11.9 billion yuan or 1.88 billion US dollars in modernizing a plant to build premium Mercedes-Benz cars including electric vehicles, BAIC said in a filing to the Hong Kong Stock Exchange dated Friday and confirmed by Daimler on Sunday.
In a statement to the Hong Kong stock exchange dated Feb. 23, Baic said the new factory would manufacture various Mercedes-Benz products in China including “new energy electric vehicles” equipped with “high quality premium automobile manufacturing system to further improve the overall production capacity of Beijing Benz.”
The chairman of Chinese carmaker Geely said late on Friday he had bought an almost 10 percent stake in Daimler, in a 9 billion US dollar bet to access the Mercedes-Benz owner’s technology.
The move poses a challenge to Daimler, which as well as its Chinese partnership with BAIC Motor Corporation has an industrial alliance to develop cars and trucks with Renault-Nissan, which owns a 3.1 percent stake in Daimler.
Source(s): Reuters