German Handelsblatt: Car manufacturer: Daimler significantly expands production capacities in China002189

Daimler plant in China

So far, Daimler has been able to manufacture around 520,000 vehicles per year in its two Chinese factories.

(Photo: Daimler AG)

Beijing In view of the booming Chinese car market, Daimler and its partner BAIC Motor want to increase production capacities by 45 percent. According to a document published on the website of the Beijing Benz Automotive (BBAC) joint venture, additional working days are to be set in the two plants in the capital Beijing.
A 7.5-hour shift per working day is to be introduced in one of the factories. According to earlier information, the combined capacity of the two factories was last at 520,000 vehicles per year.
BBAC also has a factory in Beijing with a capacity of 150,000 electric cars a year. The company declined to comment on the capacity plans. The joint venture, in which Daimler holds 49 percent, sold 611,000 vehicles in China last year.

Starting next year, Daimler wants to build the electric smart in the People’s Republic together with its second Chinese partner Geely. The Chinese government expects that by 2025, one fifth of new car sales will be battery-electric, plug-in hybrids or cars with fuel cell drives.

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Thanks to the high demand in the People’s Republic for vehicles with the three-pointed star, Mercedes-Benz Cars & Vans achieved a record return of 14.3 percent at the beginning of the year. The profit is primarily made by premium cars, above all the luxury S-Class sedans and SUVs from the compact GLA to the heavyweight GLS. They are selling well, especially in China.
Sales of cars and vans rose by 15 percent compared to the same quarter of the previous year to 627,000 vehicles. Other car manufacturers such as Volkswagen and BMW are also benefiting greatly from the fact that China has recovered more quickly from the pandemic and demand there is booming.
More: Chip manufacturers are pushing into the car market

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