The new company, called Shenzhen BYD Daimler New Technology Co. Ltd will owned 50:50 by BYD and Daimler. The two companies will invest RMB 600 million (about 88 million USD) to form the new joint-venture, headquartered in Shenzhen, the same city as BYD.
Regardless of the success of this new JV, one can see how associating themselves with Mercedes-Benz’s parent company will certainly give BYD more credibility, or as the Chinese call it, “face.” BYD will not be producing cars for Daimler, but developing cars with them.
Hopefully this does not go down as the Daimler-Chrysler partnership. Excerpts from the press release below:
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.”