BYD, Daimler sign JV contract today for electric car

Shanghai, May 27 (Gasgoo.com) China's leading battery and electric-car maker BYD Co., Ltd. and German automaker Daimler AG signed a contract today to form a 50:50 joint venture that will develop a new green-car brand for the Chinese market, media reported.

Daimler Chairman Dieter Zetsche and BYD Chairman Wang Chuanfu signed the contract in Beijing today, finalizing a deal to develop an all-electric vehicle for China. The two companies believe that China will become one of the world's largest markets for all-electric, "zero-emission" vehicles.

The new research and technology center -- Shenzhen BYD Daimler New Technology Co. -- will be based in southern Chinese boom town of Shenzhen, where BYD is headquartered. BYD and Damler are expected to invest 600 million yuan ($87.9 mln) in the new R&D company.

"Our new joint venture is well positioned to make the most of the vast potential of electric mobility in China," Mr. Zetsche said, adding that the joint venture with BYD adds another dimension to Daimler's growing presence in this important market.

The car to be developed by the JV is likely to be based on the pure-electric propulsion system used in BYD's e6 all-electric battery car and will be beefed up by Daimler's auto safety and other technologies.

According to a Daimler executive, Daimler and BYD might display a prototype of the jointly developed all-electric car as early as the Paris auto show in October.