Daimler may produce GLK crossover at Beijing venture

Shanghai, June 28 (Gasgoo.com) German carmaker Daimler is considering Chinese production of its GLK four-wheel-drive or another mid-range car in its joint venture plant in Beijing as part of its plans to boost local output in China, a company executive told a German newspaper Thursday.

'We are thinking about producing further models below the E-Class, in addition to the C-Class,' said chief financial officer Bodo Uebber to the Stuttgarter Zeitung. He said he would not rule out the GLK being chosen. The GLK is a so-called crossover between a regular compact car and a sport utility vehicle (SUV).

Sales of Daimler's mid-range Mercedes-Benz C-Class and more expensive E-Class cars have been soaring. Daimler aims to sell over 100,000 Mercedes-Benz cars in China this year, up from the 67,000 in 2009. Sales in the first five months more than doubled from a year earlier to nearly 46,500 units.

Mercedes-Benz sales in the Chinese market are targeted at 300,000 vehicles a year by 2015, with half to be assembled in local factories. 'By then the capacity of our Beijing factory will be doubled,' said Uebber.

Currently Daimler has two auto ventures in China, making its Mercedes-Benz car models at Beijing Benz (with Beijing Auto, or BAIC) and Viano and Vito MPV models at Fujian Daimler (with Fujian Motors and Taiwan's China Motors).

Daimler recently signed a deal with China's leading electric car maker BYD Co. to develop electric vehicles for the Chinese market. Their car-making JV may be set up if BAIC buys Daimler's holdings in Fujian Daimler.