Daimler and BYD team up to manufacture electric cars in China
German automobile manufacturer Daimler A.G. and China’s BYD Company Limited will make a $87.7 million investment in order to establish a R&D center that will focus on the development of electric vehicles in China.
The Shenzhen BY Daimler New Technology Company will capitalize on Daimler’s expertise on electric vehicle architecture and safety and BYD’s know-how of battery technology and electric drive systems to develop a new generation of electric vehicles. Developed cars, will be marketed under a new joint brand name.
“Our new joint venture is well positioned to make the most of the vast potential of electric mobility in China. The establishment of the joint center will strengthen the company’s growing presence in an important market. China is already the world’s second largest automobile market, and a 2008 study by McKinsey & Company predicts that the Chinese market will overtake the United States by 2030” said Dieter Zetsche, chairman of the board of management of Daimler.
This market boom is expected to put an enormous strain on the country’s energy resources and the environment, leading the Chinese automakers to turn toward various alternatives such as electric vehicles, plug-in hybrid electric vehicles and battery electric vehicles.
Daimler is a leader company in upscale market and will introduce two electric Mercedes-Benz cars this year, the B-Class F-Cell vehicle with fuel cell technology and the battery electric vehicle A-Class E-Cell.
Meanwhile, BYD established itself as the first manufacturer in China to commercialize taxi business with its e6 pure electric vehicle. The Chinese company has invested in developing advanced battery technology since 1995 and has been rapidly growing in the automotive sector since 2003.
- Even with problems in the U.S., BYD looking to Germany for Euro expansion (green.autoblog.com)
- China’s BYD Auto posts $106M second-quarter profit, but not from clean vehicles (green.autoblog.com)
- Video: Ride along in BYD’s E6 electric taxi (green.autoblog.com)
- Buffett-Backed BYD Posts 717 Million Yuan Second-Quarter Profit (businessweek.com)
- Chinese Electric Car Manufacturer BYD Establishes U.S. Headquarters in Los Angeles (brainz.org)