HONG KONG, Feb 25 — BAIC Motor Corp and Daimler AG plan to build a new factory in China for Mercedes-Benz vehicles to meet growing demand as the German automaker deepens its ties with the country.
The automakers will co-invest more than 11.9 billion yuan (RM7.4 billion) to build the facility, BAIC said today in a brief filing to the Hong Kong stock exchange. The statement didn’t disclose the location of the production base.
“The new factory will manufacture various Mercedes-Benz products in China including new energy electric vehicles” and improve the overall production capacity of the companies’ joint venture, Beijing Benz Automotive Co, the statement said.
The announcement comes a day after Li Shufu, the billionaire founder of Zhejiang Geely Holding Group Co, said he had acquired a stake worth about €7.3 billion (RM35.2 billion) in Daimler, marking the biggest investment in a global automobile manufacturer by a Chinese company. The 9.7 per cent stake makes Geely the single largest investor in the parent of Mercedes-Benz. — Bloomberg