Following Daimler's US $11.2 billion investment into the development of electric vehicles, Mercedes-Benz has reached an agreement with Chinese partner BAIC to build EV's in the People's Republic of China. The deal was signed in Berlin with German Chancellor Dr. Angela Merkel and Chinese Premier Li Keqiang both present.
“The framework agreement signed today marks a new chapter of our cooperation in terms of New Energy Vehicles. China today is already the world’s largest market for NEVs, and Daimler is committed to contributing to the further development of electric mobility in this country,” said Hubertus Troska, Member of the Board of Management of Daimler AG, responsible for Greater China.
As part of their agreement and in order to facilitate the assembly of EVs, Daimler will be investing in Beijing Benz Automotive Co., Ltd. (BBAC) to upgrade the factories, enabling them to being production of EVs. Apart from the investment in facilities, it was also agreed upon that Daimler will be purchasing a minority stake at Beijing Electric Vehicle Co., Ltd. (BJEV), a subsidiary of BAIC. The purchase is said to help further strengthen EV production in China.
The news of the agreement comes after Mercedes-Benz announced plans of producing 10 EVs models under the EQ sub-brand by the middle of the next decade. All upcoming EVs are said to use a new flexible platform that would specifically cater to their need.
Mercedes-Benz has already given us a preview with the Generation EQ crossover concept unveiled at the Paris Motor Show last September. A second EQ-badged vehicle may likely break cover in September this year at the Frankfurt Motor Show.