BYD Company Limited and Daimler AG signed a contract creating a 50:50 research and technology joint venture, Shenzhen BYD Daimler New Technology Co. Ltd, which will develop an electric vehicle for China.
BYD and Daimler will invest $87 million to use as registered capital for the joint venture. The new generation of electric vehicles developed by the joint venture will capitalize on Daimler's knowhow in electric vehicle architecture and safety as well as BYD's excellence and battery technology and e-drive systems. The vehicle will be marketed under a new brand jointly created and owned by Daimler and BYD.
"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,” said Wang Chuanfu, Chairman and President of BYD Company Limited. “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."
"Our new joint venture is well positioned to make the most of the vast potential of electric mobility in China,” said Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG. “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."
Chairman Wang and Dr. Zetsche signed the joint venture contract today in Beijing. This follows the signing of a Memorandum of Understanding on March 1. Engineers, designers and other executives from both companies established working teams after the signing of the MOU to begin working on the vehicle concept. The business license for the new joint venture is subject to relevant government approval.
Daimler recently launched the smart-for-two electric drive and this year will introduce two Mercedes-Benz electric cars: the B-Class F-CELL with fuel cell technology as well as the battery electric A-Class E-CELL.
BYD is a leader in China in developing advanced battery technology, a field it has invested in since 1995. The company has enjoyed rapid growth for five years after entering the automotive sector in 2003. BYD introduced its F3DM dual-mode hybrid electric vehicle to the world in December 2008 and started direct sales to individual customers in March 2010.
Further information on Daimler is available at: http://media.daimler.com