Beijing Auto lowers annual output, sales targets

Shanghai, September 2 (Gasgoo.com) At its recently held 2009 corporate strategy seminar, Beijing Automotive Industry Holding Co. (BAIC) scaled down its annual output and sales targets for the next three years, Beijing Times reported today.

The company has lowered its 2010 sales target to 1.5 million vehicles with sales revenue of 150 billion yuan ($22 billion). Previously Beijing Auto set its vehicle output and sales targets for next year at 2 million units and 1.8 million units, respectively.

In late July, Beijing Auto failed to reach an agreement with General Motors on the buying of GM's Opel unit in Germany due to intellectual property issues, and its bid to buy Ford's Volvo brand also seems hard to come off. These setbacks may have caused Beijing Auto to adjust its ambitious goals.

However, Beijing Auto said it has signed a deal with Fujian Motor to take a 40% stake in Fujian Daimler Automotive Co. Fujian Auto will hold onto 10% of the van-making venture. Daimler AG's 50% stake will remain unchanged.

Beijing Auto, which already makes Mercedes-Benz sedans in partnership with Daimler in China, will also introduce its first own-brand Beijing car model at the end of 2010.