Mercedes Gives Rights to E Class to Chinese BAIC


Benz Expands Further into China with E-Class Deal

The Chinese auto maker which Mercedes has taken 12% ownership of has received a heft gift from the German auto-maker which includes design and production rights to the Mercedes E-Class Sedan making BAIC the first Chinese auto maker to produce luxury sedans for the market.

While this will likely be unfelt around the rest of the world other than seeing Mercedes stock continue up in value, it does show a grand expansion of the Chinese auto industry in recent years.

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Daimler AG is giving China’s BAIC Motor Group permission to build cars using old Mercedes-Benz E-class designs and components, part of the German car maker’s effort to strengthen ties with its local partner in a country where its sales are rapidly growing.

The transfer of the outdated platform, essentially a shared basic chassis and design among vehicle models, clears the way for BAIC to become the first Chinese car maker to develop its own luxury vehicles. It will base its designs on the old Mercedes E Class.

Hubertus Troska, head of Daimler Greater China, said Monday that the transfer of the platform is part of an agreement the company and BAIC Motor Group made three years ago when Daimler bought a 12% stake in the Chinese state-run auto maker. Continue Reading

image via Wikipedia

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