Beijing Benz begins second phase expansion work

Gasgoo.com (Shanghai September 26) - Beijing Benz has officially marked the beginning of second-phase expansion work with a foundation laying ceremony, Gasgoo.com (Chinese) reported today. The ceremony, which was held in Beijing yesterday afternoon, was attended by Daimler Northeast Asia Chairman Ulrich Walker, BAIC Board Chairman Xu Heyi and Vice Mayor of Beijing Gou Zhongwen.

The expansion project was agreed upon between Daimler AG and BAIC Group in Berlin last June. Although details of the project have yet to be announced, there are reports that a key portion of it will revolve around domestic production of the MFA platform at Beijing Benz's second automobile factory. The MFA platform underpins various Mercedes-Benz A-Class and B-Class models.

Last June's agreement also led to both parties beginning construction work on a brand new engine factory and laying down plans for a new research and development center.

At the event, Mr. Walker (pictured below) announced his desire to see Mercedes-Benz become the world's top-selling luxury brand by 2020. He also added that the Chinese market will soon become the brand's largest market. According to Mr. Walker, the second phase expansion project signifies the beginning of deeper cooperation between Daimler and BAIC. Mr. Xu also expressed similar sentiments. "The second phase represents an important breakthrough [for Beijing Benz] in terms of [both] new products and technology," he stated.

Beijing Benz is Mercedes-Benz's most valuable tool in the Chinese automobile market as it competes with rival German luxury brands BMW and Audi. To its end, Mercedes-Benz will invest three billion euros ($3.88b) by 2015 to further develop in the Chinese market.