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Mercedes-Benz Trucks has a strong position in China: Intensified cooperation with the Chinese construction machinery manufacturer Zoomlion

By | Published Tuesday, 28 February 2012

Within the framework of their partnership in China, Mercedes-Benz Trucks and the Chinese construction machinery manufacturer Zoomlion Heavy Industry are intensifying their cooperation. Last Saturday they signed a letter of intent (LoI) for the delivery of 2,500 Mercedes-Benz trucks. The letter of intent concerns heavy-duty Mercedes-Benz Actros 3341 and 4141 truck models.


The Chinese corporation will receive the vehicles later this year. The 2,500 Mercedes-Benz Actros vehicles will be manufactured at the truck plant in Wörth, where they will also be adapted to Zoomlion’s special applications for concrete pumps.

In 2011 Daimler sold almost 5,800 Mercedes-Benz trucks in China, making it the market leader among the European competitors in China’s import segment. As a result, China is now the world’s six-largest market for the sale of Mercedes-Benz trucks.

Premium trucks adapted to special applications are particularly needed for China’s rapidly growing construction sector. China is currently planning to invest around 7 trillion RMB (more than €800 billion) in building and expanding urban infrastructures between 2011 and 2015.

In a statement, Hubertus Troska, Head of Mercedes-Benz Trucks and the person responsible for Mercedes-Benz Trucks worldwide, underscored the importance of the new contract: “We are very delighted that our Chinese business partner chose Mercedes-Benz trucks for its challenging applications in the construction industry. This letter of intent deepens our partnership with Zoomlion. It confirms the good image of our Mercedes-Benz trucks and the great capabilities of our young Mercedes-Benz Trucks sales organization in China, which helps us strengthen our market presence.”

Zoomlion Heavy Industry, which was founded in 1992, is one of China’s leading manufacturers of construction machinery. Zoomlion specializes in the development and production of advanced technologies and equipment for machine construction, as well as for energy, environmental, and transportation systems. In addition, it sells its products in more than 70 countries worldwide. In recent years, Zoomlion established a particularly strong presence in the market for concrete construction machinery. Zoomlion has a permanent workforce of about 30,000 employees. The company’s headquarters are located in Changsha in the province of Hunan.

Daimler Trucks is pursuing two strategic goals for the Chinese market. In addition to promoting the sale of high-quality Mercedes-Benz trucks in the premium segment, the company will also participate in China’s promising volume market in the future. Slightly more than a week ago, Daimler announced the launch of BFDA (Beijing Foton Daimler Automotive Co., Ltd), its joint venture with the Chinese truck manufacturer Foton. The joint venture gives Daimler a 50 percent stake in Foton’s business with medium and heavy-duty Auman brand trucks. Once the ramp-up phase is completed, BFDA will have a production capacity of 160,000 units.

China’s market volume for medium and heavy-duty trucks has doubled to more than one million units over the past five years. Last year the Chinese market accounted for around 40 percent of the total worldwide sales of medium and heavy-duty trucks.
Credits: Daimler AG

Copyright © 2012, Mercedes-Benz-Blog. All rights reserved.

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First Locally Produced Mercedes-Benz GLK Compact SUV Rolls off the Line in China

By | Published Monday, 5 December 2011

Marking another milestone for Mercedes-Benz in China, in early December the first locally produced Mercedes-Benz GLK compact SUV rolled off the line at the Beijing production plant of Beijing Benz Automotive Co., Ltd. (BBAC). This follows the June 2011 agreement between Daimler and Chinese Joint Venture partner BAIC to further expand their cooperation in China with various projects, including the GLK.


Dr. Wolfgang Bernhard, member of the Daimler Board of Management, Manufacturing and Procurement Mercedes-Benz Cars & Mercedes-Benz Vans, explains: “The start of our local GLK production in China exemplifies our strategy of global expansion of production close to the market. We are thus supporting our sales success in our regional markets also from the production side, an important contribution to the Mercedes-Benz 2020 growth strategy.”

Ulrich Walker, Chairman & CEO of Daimler Northeast Asia, adds: “The GLK has provedto be enormously popular with customers here in China, so it is an ideal addition to our lineup of locally-produced vehicles.” Emphasizing the importance of the Chinese market, Mr. Walker continued: “Nothing represents our long-term commitment to China more tangibly than the production of vehicles in China itself: The localized production of further Mercedes-Benz models is an important element of our growth strategy for the Chinese market. As early as 2015 we expect to locally produce two-thirds of all Mercedes-Benz passenger cars sold in China. The start of production of the GLK is another important milestone towards this goal.”

“The GLK adds to the locally-produced Long-wheel-base E-Class and new C-Class, and complements other current investments in BBAC, including the new engine plant and R&D Center. We’re also planning local production of additional Mercedes-Benz models,” explains Frank Deiss, President & CEO of Beijing Benz Automotive Co.

The Mercedes-Benz GLK has received a very warm welcome from customers worldwide since its debut in 2008. In particular in China, a growing number of customers have appreciated the brand’s compact SUV, with sales already well in excess of 20,000 units in the current year. China now represents one of the most important markets worldwide for the GLK.

Mercedes-Benz sold 168,940 vehicles overall in China (including Hong Kong) from January through November 2011, an increase of 29.9 percent compared to the same time-frame in 2010. Year-to-date sales in October 2011 already exceeded the total number of cars sold in 2010. The next few years are also certain to see further sales growth: in 2015, the company aims to sell more than 300,000 Mercedes-Benz passenger cars in China.

About Daimler Northeast Asia

Daimler Northeast Asia, located in Beijing, includes Mercedes-Benz (China) Ltd, Mercedes-Benz Auto Finance Ltd, Daimler Northeast Asia Parts Trading & Services Co., Ltd., the Joint Ventures Beijing Benz Automotive Co., Ltd. (BBAC), Fujian Daimler Automotive (FJDA), Shenzhen BYD Daimler New Technology Co. Ltd., as well as sales organizations in Hong Kong, Korea, and Taiwan.

Local production of Mercedes-Benz passenger cars began in 2006 at the 50/50 joint venture BBAC with the predecessor of the current E-Class. In spring 2008, the C-Class joined local production as the second model. Since May 2010, BBAC producesthe current E-Class as a long-wheelbase version especially customized to meet the requirements of the Chinese market.

In June 2011, Daimler and its Joint Venture partner BAIC signed a strategic framework agreement to further expand their cooperation in China. The agreement includes the following projects: expansion of local passenger car production in 2011 with the GLK, with three models of the new generation of Mercedes-Benz premium compact cars planned for 2013; further expansion of production capacities for the C-Class and the E-Class Long-wheel-base version; production of 4-cylinder gasoline engines in 2013 for use in locally produced Mercedes-Benz passenger cars and vans; and a new R&D center to be established with a focus on vehicle testing and adaptation, as well as R&D activities with suppliers. With these projects, about 2 billion euros will be invested at BBAC.

In November 2011, Daimler and BAIC signed a Letter of Intent which will further deepen the comprehensive strategic partnership between the two companies. BAIC and Daimler will jointly analyze the possibilities of technological cooperation as well as cooperation in the field of research and development of new energy vehicles with the aim of further improving the competitiveness of both partners in China.

Source: Daimler AG

Copyright © 2011, Mercedes-Benz-Blog. All rights reserved.

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