Daimler and BAIC Sign Letter of Intent to Further Deepen Strategic Partnership

STUTTGART, Germany, Nov. 2, 2011 /PRNewswire-Asia/ -- Daimler AG and its Chinese partner Beijing Automotive Group Co., Ltd. ("BAIC") today signed a Letter of Intent in Stuttgart, which will further deepen the comprehensive strategic partnership between these two companies.

The Letter of Intent was signed by Xu Heyi, Chairman of BAIC, Han Yonggui, President of BAIC, Prof. Dr. Thomas Weber, Head of Group Research & Mercedes-Benz Cars Development, and Ulrich Walker, Chairman and CEO of Daimler Northeast Asia in the presence of Jia Qinglin, Chairman of the National Committee of the Chinese People's Political Consultative Conference, during his visit to Daimler's largest manufacturing plant in Sindelfingen. Ji Lin, Executive Vice Mayor of Beijing, Dr. Nils Schmid, Deputy State Premier and Minister of Finance and Economics of the state of Baden-Württemberg, and Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, were also present at the signing ceremony.

(Photo: http://photos.prnewswire.com/prnh/20111102/CN98666)

The Letter of Intent signed between the two companies states that both sides are going to evaluate additional initiatives at corporate level as well as to support each other with further investments. BAIC and Daimler will jointly analyze the possibilities of technological cooperation as well as cooperation in the field of research and development of new energy vehicles with the aim of further improving the competitiveness of both partners in China.

Partnership between BAIC and Daimler

As one of China's largest automakers, BAIC Group sold 1.5 million vehicles last year. Daimler AG is one of the world's most successful automotive companies. Both parties have already established a long term strategic partnership including significant investments in the Chinese automotive industry over the past years.

The new Letter of Intent is another step in both parties' successful cooperation and builds on a strategic framework agreement that was signed earlier this year: In June this year in the presence of Chinese premier Wen Jiabao and German Chancellor Angela Merkel, both partners agreed to invest two billion euros in the Joint Venture Beijing Benz Automotive Co, Ltd. ("BBAC"). BBAC is currently producing Mercedes-Benz C-Class and E-Class sedans and will be expanded to include the GLK compact SUV as of 2011 as well as three models of the new generation of Mercedes-Benz premium compact cars.

As of 2013, a new engine plant will produce 4-cylinder gasoline engines, which will be used in locally produced Mercedes-Benz passenger cars and vans.

A new R&D center at BBAC will be established, which will mainly focus on vehicle testing and adaptation as well as R&D activities with suppliers.

SOURCE Beijing Automotive Group Co., Ltd.