BAIC and Daimler to build $1.9 billion China assembly plant
Daimler AG and BAIC Motor Corp. are two of the top car producers in the world today. The two companies are now teaming up on a joint effort that will bring more jobs and luxury vehicles to China. The two companies recently announced that they will be teaming up to build a plan that will cost $1.9 billion in US dollars and will eventually be used to build Mercedes Benz cars and SUVs in China.
The need for the new plant comes at a time in which China has a growing demand for luxury vehicles and electric cars. The new factory will start by focusing on a variety of Mercedes Benz cars that are either electric or have higher-eficiency engines. This also goes along with the country’s renewed efforts to reduce local pollution.
Thie story of the new plan being developed comes at a time of a lot of change for Daimler. Over the past few weeks it was announced that the owners of the Geely auto group in China had been making a push to buy more stock in Daimler. The company, which is privately owned and is led by CEO Li Shufu,is reportedly working to acquire a larger stake in Daimler. The main reason for this is so he will have greater access to Mercedes Benz vehicles. As of today, Geely owns just under 10% of the Daimler company and is currently the largest investor in the company, which is the parent company for Mercedes Benz and other companies.