BYD-Daimler JV established in Shenzhen

Shanghai, August 2 (Gasgoo.com) On July 30, Shenzhen BYD Daimler New Technology Co. Ltd, a 50/50 joint venture between China's electric carmaker BYD Co., Ltd. and German automaker Daimler AG, was formally founded in the southern Chinese boomtown of Shenzhen, media reported Monday.

Wang Chuanfu, President of the Hong Kong-listed BYD, Lian Yubo, Vice-President and Chief Engineer of BYD, Dr.Thomas Weber, Member of Management Board of Daimler AG and Ulrich Walker, President of Daimler Northeast Asia Ltd., took part in the founding ceremony last Friday.

As early as March this year, BYD and Daimler have signed a Memorandum of Understanding to form a 50/50 joint venture to develop a new green-car brand for the Chinese market. At present, several Daimler staff have taken office in Shenzhen BYD Daimler New Technology Co. Ltd, holding key positions like Chief Operating Office (COO); While BYD's Lian Yubo will become CEO of the new company.

Additionally, it is reported that BYD and Daimler will develop a new energy car in the 600 million yuan ($87.9 mln) R&D center in Shengzhen and launch the car to the market in 2013. The new car 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.

The establishment of the BYD-Daimler Joint Venture marks a further step towards the cooperation between the two partners, who are now able to utilize the strengths of both companies to create a new brand of electric cars for China.