- May 27, 2010
Daimler, BYD sign joint venture agreement to bring electric cars to China
BYD e6 electric MPV – Click above for high-res image gallery
Daimler and BYD have been public about their mutual attraction since March, when the two companies announced they would work together to bring electric cars to the Chinese market. Daimler chairman and head of Mercedes-Benz Dieter Zetsche made overtures when he said Daimler's electric vehicle architecture and BYD's battery technology and electric drive systems were "a perfect match." We then learned the partnership would bring a new brand of electric cars to market from a new research and development center in Shenzhen.
Thus, it should surprise no one that BYD and Daimler have made it official, signing a joint venture contract in Beijing that establishes the Shenzhen BYD Daimler New Technology Co. Ltd. The new JV will be owned half and half by the two parent companies and it tasked with "developing an electric vehicle for China." The two companies will invest RMB 600 million (around $87 million U.S., at today's exchange rate) in the JV. For lots of
BYD Company Limited and Daimler AG Sign Joint Venture Contract to Develop Electric Vehicles in China
-- BYD and Daimler AG to establish 'Shenzhen BYD Daimler New Technology Co. Ltd,' a 50:50 research and technology center to develop electric cars in China -- Mr. Wang Chuanfu, Chairman and President of BYD Company Limited: 'Together with Daimler we are making excellent progress identifying opportunities to utilize the strengths of both companies to create a new brand of electric cars for China. This is a unique and exciting initiative and together we are pushing hard to bring this new electric vehicle to market as soon as possible.' -- Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG: 'Our new joint venture is well positioned to make the most of the vast potential of electric mobility in China. We are fortunate to have excellent joint venture partners in China and the establishment of this research and technology center with BYD adds another dimension to our growing presence in this important market.'
BEIJING, May 27 /PRNewswire-FirstCall/ -- BYD Company Limited and Daimler AG today signed a contract creating a 50:50 research and technology joint venture called "Shenzhen BYD Daimler New Technology Co. Ltd," that will develop an electric vehicle for China.
BYD and Daimler will invest RMB 600 million to use as registered capital for the Joint venture. The new generation of electric vehicles developed by the joint venture will capitalize on Daimler's know how in electric vehicle architecture and safety as well as BYD's excellence and battery technology and e-drive systems. The vehicle will be marketed under a new brand jointly created and owned by Daimler and BYD.
Mr. Wang Chuanfu, Chairman and President of BYD Company Limited: "Together with Daimler we are making excellent progress identifying opportunities to utilize the strengths of both companies to create a new brand of electric cars for China. This is a unique and exciting initiative and together we are pushing hard to bring this new electric vehicle to market as soon as possible."
Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG: "Our new joint venture is well positioned to make the most of the vast potential of electric mobility in China. We are fortunate to have excellent joint venture partners in China and the establishment of this research and technology center with BYD adds another dimension to our growing presence in this important market."
Chairman Wang and Dr. Zetsche signed the joint venture contract today in Beijing. This follows the signing of a Memorandum of Understanding on March 1. Engineers, designers and other executives from both companies established working teams after the signing of the MOU to begin working on the vehicle concept. The business license for the new joint venture is subject to relevant government approval.
Daimler is a leader in sustainable mobility and in developing automotive architectures for zero-emissions driving. The company recently launched the smart for two electric drive and this year will introduce two Mercedes-Benz electric cars: the B-Class F-CELL with fuel cell technology as well as the battery electric A-Class E-CELL.
BYD is China's leading manufacturer in developing advanced battery technology, a field it has invested in since 1995. The company has enjoyed rapid growth for five years after entering the automotive sector in 2003. It is the fastest growing Chinese automotive manufacturer. BYD introduced its F3DM dual-mode hybrid electric vehicle to the world in December 2008 and started direct sales to individual customers in March 2010. The company recently launched the e6, a pure electric vehicle and established itself as the first manufacturer in China to commercialize taxi business with its e6.
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