BAIC and Mercedes-Benz establish new company in China to overlook both import and domestic vehicle sales

Gasgoo.com (Shanghai December 20) - The new Beijing Benz Sales Service Company has officially been established this Tuesday, the Beijing Times reported today. The new company, which is equally owned by Daimler Benz and BAIC Group, will oversee sales services for both imported and domestically-produced Mercedes-Benz vehicles in China.

Previously, sales services for imported Mercedes-Benz vehicles were administered separately from those for domestically made Beijing Benz automobiles. Following establishment of the new company, marketing work, customer service, sales network management and other operations for both types of vehicles will be unified. Mercedes-Benz China President and CEO Nicolas Speeks will head up the new company.

Last June, Daimler and BAIC signed an agreement in Berlin, in which both parties agreed to strengthen cooperation and intensify resource unification. Following the agreement, Daimler increased its stake in Mercdes-Benz China from 51 percent to 75 percent earlier this year.

According to its development plans, Daimler hopes to sell 300,000 Benzes in China in 2015, with domestically manufactured vehicles accounting for two-thirds of those sales. The manufacturer also plans to release around 20 brand new or updated vehicles in China by that time. The amount of Chinese Mercedes-Benz dealerships is scheduled to increase by 50 outlets annually, with an increasing number of dealerships to be set up outside of first-tier cities.

Daimler's performance in China this year is still lagging behind German rivals BMW and Volkswagen. Looking at combined figures for January to November, Chinese sales of BMWs and Audis both grew over 30 percent, while sales of Benzes in the country increased just 4.2 percent.