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New Benz models to be manufactured in China’s capital

Beijing Automotive Industry Holding Co., Ltd. (BAIC) confirmed on May 8 that they have signed a project proposal with Daimler Chrysler AG of Germany to manufacture Mercedes-Benz C-Class and E-Class sedans in China. (Xinhuanet) 

Comprising a new facility in Beijing with an initial annual production capacity of 25,000 vehicles, the project was signed off on May 3 when Chinese Premier Wen Jiabao was visiting Germany, after obtaining authorization from the Chinese National Development and Reform Commission.

"Establishing a manufacturing presence for Mercedes-Benz passenger cars in China is a key part of our Asia strategy, and further complements our activities in the Chinese market," said Juergen Schrempp, chairman of DaimlerChrysler. He also believe that their intensified involvement in China would help ensure that they took even better advantage of the many business opportunities in the world's fastest-growing automotive market.

The new facility will be built on the reconstruction and relocation of Beijing Jeep Corporation, Ltd. (BJC), the first joint venture for automobile production in China established in 1984 and co-operated by Beijing Automobile Industry Corporation and DaimlerChrysler.

"The newly signed agreement signifies another important achievement in foreign cooperation in Beijing's auto industry. It will lead Beijing's auto industry into the fast lane by further enlarging the auto industry's gross profits and promoting its competitive power," said An Qingheng, chairman of BAIC.

"The initial annual production capacity of 25,000 Mercedes-Benz C-Class and E-Class sedans and their associated engines will go into production in the new factory of BJC in 2005," said An. According to An, the next aim of both sides is to start cooperation in business automobiles, which "will be a great drive for the realization of Beijing's goal for its auto industry to produce and sell one million vehicles with an annual sales of 100 billion yuan (12 billion US dollars) by 2008," said An.