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Mercedes-Benz to produce C class engine in China
Shanghai. November 14 (Gasgoo.com) - Beijing Benz-DaimlerChrysler Auto Co (BBDC) President and CEO Gunter Butschek said that Mercedes-Benz will introduce the production of powertrain system to China when the joint venture starts to produce C class in China next year.
"The local production of the powertain system simply means local production of engines," said Xu Heyi, Chairman of Board of BBDC, adding that "We will announce this decision in two months. The whole process of an engine production system, from cylinder casting to electronic parts to final assembly, will be made locally in Beijing.”
Currently, Audi is the only foreign luxury automaker that has an engine production facility in China, while other luxury vehicle makers, like BMW and Volvo, do not.
"The most critical part of automobile technology is the engine system. NDRC (National Development and Reform Commission) is very pleased to learn Benz’s decision,” said an unnamed official from the Industry Policy Division under NDRC.
Note: Under the Regulations on Management of the Imports of Automotive Components and Parts Featuring Complete Vehicles which was formulated by the General Administration of Customs, National Development and Reform Commission, Ministry of Commerce in 2005, the following instances shall be considered vehicles bearing the features of a complete vehicle:
1. Imported CKD or SKD to assemble automobiles;
2. If, within the scope as prescribed in Article 4 of the present Measures:
A. imported both the vehicle body (including the cab) assembly and engine assembly to assemble vehicles;
B. imported either the vehicle body (including the cab) assembly or engine assembly, and three or more other assemblies (systems) to assemble vehicles;
C. 5 or more imported assemblies (systems) other than the vehicle body (including the cab) assembly and the engine assembly to assemble vehicles.
3. The total price of the imported components and parts is not less than 60% of the total price of the complete vehicle type. The standard for verifying complete vehicle features as described herein shall go into effect on July 1, 2006.
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