Daimler denies SPV JV with Brilliance China

Shanghai, August 28 (Gasgoo.com) A senior official of Daimler yesterday dismissed as "speculation, rumors" reports of a joint venture between Daimler AG and Brilliance China Automotive Holdings to make special purpose vehicles (SPV) in China, Reuters reported.

"I know everything about China in Daimler, so ... from my point of view that's not right," said Ulrich Walker, head of Daimler's Northeast Asia operations.

On August 3, an executive of Brilliance Auto, the parent company of China Brilliance, said the shareholding structure and size of the venture had not been finalized, but a deal could be reached before the end of the year.

"The project is to convert Daimler's commercial vehicles into special purpose vehicles. We have been in discussion since last year," the Brilliance Auto executive told AFP.

Walker said such a venture would not make strategic sense because Brilliance, China's eighth-largest carmaker, is a partner of Mercedes-Benz rival BMW. Brilliance makes BMW 3-series and 5-series sedans in the northeastern Chinese city of Shenyang.

Daimler makes Mercedes-Benz passenger cars in China with Beijing Automotive Industry Holding Corp (BAIC) and it has also agreed to set up a truck venture with BAIC subsidiary Beiqi Foton Motor Co.

Mercedes-Benz sold 31,711 cars in China in the first seven months of this year, up 49% from a year earlier. Daimler is planning to expand its local manufacturing capacity in China, said Walker.