Daimler, BAIC seeking $2 billion in loans for new production lines and an engine factory

Article by Christian A., on September 21, 2011

The joint venture of Beijing Automobile Industry Holding Co. and Daimler AG is seeking 12.8 billion yuan ($2 billion) in loans from a group of banks for an engine factory and new production lines.

Chairman Xu Heyi of Beijing Auto confirmed this in an interview in the Chinese port city of Dalian, where he attended the World Economic Forum meetings. In June, Beijing Auto and Daimler inked a deal to invest 2 billion euros to manufacture four new models in China, construct a new R&D center and expand engine production.

The joint venture, called the Beijing Benz Automotive Co., currently produces around 80,000 C-class and "stretch" E-class sedans in China annually, says Autonews. Daimler revealed that it will boost production, but it did not disclose how much capacity it plans to add.

The new engine plant of the joint venture will begin producing four-cylinder gasoline engines by 2013. Initially, the factory will produce 100,000 engines a year, with plans to increase annual production to 250,000 units.

The new technical center will be responsible for vehicle testing and adaptation, plus R&D with suppliers. Xu further mentioned that Beijing Auto is in talks with partner Hyundai Motor Co. to develop a China-only brand which produces electric vehicles.

Earlier this September, Chinese media had revealed that the two partners might do so. The first EV may be launched by the end of this year, Xu stated. Nissan Motor Co. and Daimler have already revealed plans to launch EVs in China. The government is targeting 1 million EVs to be on the road by 2015, according to the Ministry of Science.

Topics: daimler, baic

If you liked the article, share on:

Comments

Recommended

The first time Porsche revealed the Panamera Sport Turismo to the public was during the 2017 Geneva Motor Show earlier this year. And now it has already entered production, and...
by - July 27, 2017
Autocar has got some juicy rumours for us regarding a new McLaren hypercar. The British publication has inside sources claiming that a new model will be added to the Ultimate...
by - July 27, 2017
Ferrari has recently launched the New Power15 extended warranty program. The company developed this program in response to the notion that supercars are very expensive to maintain. Truth be told,...
by - July 27, 2017
The UK it seems is about to take the same road as its neighbouring country France by banning sales of petrol and diesel vehicles beginning 2040. As reported by The...
by - July 27, 2017
What has BMW been up to lately? The company recently announced that they are currently focusing on electrification, and so far, their new architecture will enable “electrification of every model...
by - July 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries