Beijing-Benz DaimlerChrysler Automotive
Encyclopedia
Beijing Benz - Daimler Chrysler Automotive Co Ltd is a Chinese car manufacturer. It is also known as BBDC, but as its legal name may have recently been changed to Beijing Benz Automotive Co Ltd, BBAC may now be the preferred acronym.
A joint venture
co-owned by German Daimler AG and Chinese Beiqi, the company has kept the same Chinese owner but had several other foreign partners prior to Daimler. BBDC assembles and manufactures the Mercedes-Benz E-Class
and C-Class
in China. These will soon be joined by the GLK-Class
. While BBDC does not produce all the Mercedes-branded autos sold on the Chinese market, such cars currently enjoy a reputation for high quality and popularity. Some Mercedes offerings, the S-Class
for example, are imported by Mercedes-Benz (China) Ltd. Mercedes Benzes are, alongside FAW Group Audis, Brilliance Auto BMWs, and Lexuses, some of the only Western luxury cars to have gained popularity in the Chinese market.
Sales in 2010 were expected to reach 50,000 cars, but total Mercedes Benz sales in China including imports were near 150,000. In 2008 production capacity at BBDC was estimated at 100,000 units/year, but such figures may consider engines and vehicles as discrete. The company was likely able to produce only half that number of whole vehicles.
s with a Western partner, BBDC was established in 2005 and is currently owned by Beiqi and Daimler AG.
when it was established in 1984 with American Motors Corporation
.
American Motors began negotiations in 1979 to sell its vehicles in China and to gain access to then low-cost Chinese labor. The Chinese wanted access to more-modern automotive technology; Beijing Jeep suited the needs of both parties and produced the American Motors Jeep Cherokee (XJ)
in Beijing
. Almost six years after talks on the joint venture had begun the first Jeep Cherokee
rolled off the assembly line on 26 September 1985. Assembly of the Cherokee continued after Chrysler's buyout of American Motors as did production of the classic Beijing BJ212
-based SUVs. Beijing Jeep has since become emblematic as a case study of early FDI
in China. These studies typically compare the marketing strategies of Beijing Jeep and Shanghai Volkswagen.
Chrysler's purchase of American Motors and its Jeep brand came with an unexpected boon, Beijing Jeep. A few Chrysler models were subsequently added to the Chinese company's product line including Jeep Grand Cherokee
, Mitsubishi Pajero Sport, and Mitsubishi Outlander
, as well as some Beijing Jeep-branded, locally-developed vehicles. Chrysler left the joint venture in early 2009. Production of newer Jeep models in China is planned to resume in 2011 with a joint venture between Guangzhou Automobile Group and Fiat.
The company started producing the Mercedes-Benz E-Class
locally in 2006 and the C-Class
in 2008. Manufacture of Chrysler-branded models continued until at least 2008. This included the 300C, which was both locally produced and imported.
Prior to 2010 the E-Class may have been assembled from knock-down kits, and the localization rate for production was a scant 30%. The component localization rate will rise to 70% and production capacity will increase to 100,000 units/year.
officials such as ministers and provincial heads. A First Automobile Works
Audi is the traditional choice for this purpose.
A joint venture
Joint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
co-owned by German Daimler AG and Chinese Beiqi, the company has kept the same Chinese owner but had several other foreign partners prior to Daimler. BBDC assembles and manufactures the Mercedes-Benz E-Class
Mercedes-Benz E-Class
The Mercedes-Benz E-Class is a range of executive-size cars manufactured by Mercedes-Benz in various engine and body configurations. The E initially stood for Einspritzmotor, ; a new feature in volume production vehicles at the time that the E-Class first appeared, with the E as a suffix to the...
and C-Class
Mercedes-Benz C-Class
The Mercedes-Benz C-Class is a compact executive car produced by the Mercedes-Benz division of Daimler AG. First introduced in 1993 as a replacement for the 190 range , the C-Class was the smallest model in the marque's lineup until the 1997 arrival of the A-Class...
in China. These will soon be joined by the GLK-Class
Mercedes-Benz GLK-Class
The Mercedes-Benz GLK is a compact luxury crossover released as a 2009 model elsewhere and as a 2010 model in North America after its public debut at the 2008 Beijing Auto Show alongside the competing Audi Q5....
. While BBDC does not produce all the Mercedes-branded autos sold on the Chinese market, such cars currently enjoy a reputation for high quality and popularity. Some Mercedes offerings, the S-Class
Mercedes-Benz S-Class
The Mercedes-Benz S-Class is a series of luxury sedans produced by Mercedes-Benz, a division of Daimler AG. The classification was officially introduced in 1972 with the W116 S-Class, which succeeded previous Mercedes-Benz models dating to the mid-1950s...
for example, are imported by Mercedes-Benz (China) Ltd. Mercedes Benzes are, alongside FAW Group Audis, Brilliance Auto BMWs, and Lexuses, some of the only Western luxury cars to have gained popularity in the Chinese market.
Sales in 2010 were expected to reach 50,000 cars, but total Mercedes Benz sales in China including imports were near 150,000. In 2008 production capacity at BBDC was estimated at 100,000 units/year, but such figures may consider engines and vehicles as discrete. The company was likely able to produce only half that number of whole vehicles.
History
While its history can be traced back to the oldest of the Chinese auto-making joint ventureJoint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
s with a Western partner, BBDC was established in 2005 and is currently owned by Beiqi and Daimler AG.
American Motors
Beijing Benz's origins begin with the Beijing Jeep Corporation , which became China's first Sino-western automotive joint ventureJoint venture
A joint venture is a business agreement in which parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets...
when it was established in 1984 with American Motors Corporation
American Motors
American Motors Corporation was an American automobile company formed by the 1954 merger of Nash-Kelvinator Corporation and Hudson Motor Car Company. At the time, it was the largest corporate merger in U.S. history.George W...
.
American Motors began negotiations in 1979 to sell its vehicles in China and to gain access to then low-cost Chinese labor. The Chinese wanted access to more-modern automotive technology; Beijing Jeep suited the needs of both parties and produced the American Motors Jeep Cherokee (XJ)
Jeep Cherokee (XJ)
The Jeep Cherokee is a unibody compact SUV. It shared the name of the original full-size SJ model, but without a body-on-frame chassis, it set the stage for the modern SUV. Its innovative appearance and sales popularity spawned important imitators as other automakers began to notice that this...
in Beijing
Beijing
Beijing , also known as Peking , is the capital of the People's Republic of China and one of the most populous cities in the world, with a population of 19,612,368 as of 2010. The city is the country's political, cultural, and educational center, and home to the headquarters for most of China's...
. Almost six years after talks on the joint venture had begun the first Jeep Cherokee
Jeep Cherokee
Jeep Cherokee may refer to:* Jeep Cherokee * Jeep Cherokee * Jeep Grand Cherokee , , and * Jeep Liberty, a.k.a. Jeep Cherokee...
rolled off the assembly line on 26 September 1985. Assembly of the Cherokee continued after Chrysler's buyout of American Motors as did production of the classic Beijing BJ212
Beijing BJ212
The Chinese Beijing BJ212 and BJ2020 is a Land Rover Defender and Jeep inspired four-wheel drive, diesel-powered light-duty offroad utility vehicle in the half tonne class, built by Beijing Automobile Works. The original design, depending in large on Russian off-roaders from UAZ and possibly...
-based SUVs. Beijing Jeep has since become emblematic as a case study of early FDI
Foreign direct investment
Foreign direct investment or foreign investment refers to the net inflows of investment to acquire a lasting management interest in an enterprise operating in an economy other than that of the investor.. It is the sum of equity capital,other long-term capital, and short-term capital as shown in...
in China. These studies typically compare the marketing strategies of Beijing Jeep and Shanghai Volkswagen.
Chrysler
Jeep Grand Cherokee
The Jeep Grand Cherokee is a Mid-size SUV produced by the Jeep division of Chrysler. While some other SUVs were manufactured with body on frame construction, the Jeep Grand Cherokee has always used a unibody chassis.- Development :...
, Mitsubishi Pajero Sport, and Mitsubishi Outlander
Mitsubishi Outlander
The Airtrek was first introduced to the Japanese market on June 20, 2001, priced from ¥1.7–2.3 million. It offered a choice of either a 4G63 2.0 L or a 4G64 2.4 L GDI, mated to a standard INVECS-II 4-speed semi-automatic transmission. Both front- and four-wheel drive were available...
, as well as some Beijing Jeep-branded, locally-developed vehicles. Chrysler left the joint venture in early 2009. Production of newer Jeep models in China is planned to resume in 2011 with a joint venture between Guangzhou Automobile Group and Fiat.
Daimler AG
During Chrysler's short-lived partnership with Daimler AG, maker of Mercedes-Benz cars, it was decided that the American company's Chinese joint venture would produce Mercedes-Benz-branded products. Beijing Jeep became Beijing Benz-DaimlerChrysler Automotive Co Ltd, and while Chrysler was removed from the company in 2009, it remained in its legal name. Then German Chancellor Gerhard Schroeder was a presence at the 2004 naming ceremony.The company started producing the Mercedes-Benz E-Class
Mercedes-Benz E-Class
The Mercedes-Benz E-Class is a range of executive-size cars manufactured by Mercedes-Benz in various engine and body configurations. The E initially stood for Einspritzmotor, ; a new feature in volume production vehicles at the time that the E-Class first appeared, with the E as a suffix to the...
locally in 2006 and the C-Class
Mercedes-Benz C-Class
The Mercedes-Benz C-Class is a compact executive car produced by the Mercedes-Benz division of Daimler AG. First introduced in 1993 as a replacement for the 190 range , the C-Class was the smallest model in the marque's lineup until the 1997 arrival of the A-Class...
in 2008. Manufacture of Chrysler-branded models continued until at least 2008. This included the 300C, which was both locally produced and imported.
Prior to 2010 the E-Class may have been assembled from knock-down kits, and the localization rate for production was a scant 30%. The component localization rate will rise to 70% and production capacity will increase to 100,000 units/year.
Government procurement
As of 2009 Beijing Benz products, alongside those of several other makes, are purchased for use by Chinese StatePeople's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
officials such as ministers and provincial heads. A First Automobile Works
First Automobile Works
FAW Group Corporation is a state-owned enterprise with publicly traded subsidiaries: FAW Car Company , Tianjin FAW Xiali Automobile Co Ltd , Changchun FAWAY Automobile Components Co Ltd ....
Audi is the traditional choice for this purpose.
Current
- Mercedes-Benz C-ClassMercedes-Benz C-ClassThe Mercedes-Benz C-Class is a compact executive car produced by the Mercedes-Benz division of Daimler AG. First introduced in 1993 as a replacement for the 190 range , the C-Class was the smallest model in the marque's lineup until the 1997 arrival of the A-Class...
- Mercedes-Benz E-ClassMercedes-Benz E-ClassThe Mercedes-Benz E-Class is a range of executive-size cars manufactured by Mercedes-Benz in various engine and body configurations. The E initially stood for Einspritzmotor, ; a new feature in volume production vehicles at the time that the E-Class first appeared, with the E as a suffix to the...
- BJ2022BJ2022The BJ2022 is a 1/2,3/4 ton 4×4 utility vehicle developed by Beijing-Benz DaimlerChrysler Automotive and used by the PLA.The BJ2022 has been in designed since 2002...
Brave Warrior (military vehicle)
Past
- Beijing BJ212Beijing BJ212The Chinese Beijing BJ212 and BJ2020 is a Land Rover Defender and Jeep inspired four-wheel drive, diesel-powered light-duty offroad utility vehicle in the half tonne class, built by Beijing Automobile Works. The original design, depending in large on Russian off-roaders from UAZ and possibly...
, later BJ2020/2024/2025/2032 - Jeep BJ2021/7250 Cherokee (based on the Jeep Cherokee (XJ)Jeep Cherokee (XJ)The Jeep Cherokee is a unibody compact SUV. It shared the name of the original full-size SJ model, but without a body-on-frame chassis, it set the stage for the modern SUV. Its innovative appearance and sales popularity spawned important imitators as other automakers began to notice that this...
, this was the original vehicle produced by Beijing Jeep from 1983 to 2005) - Jeep 2500/2700
- Chrysler 300Chrysler 300The Chrysler 300 is a full-size upscale car first shown at the 2003 New York Auto Show as a concept car. Sales in the U.S. began in the spring of 2004 as an early 2005 model year car. Designed by Ralph Gilles, the new 300 was built as a high-end sedan while the SRT-8 model was designed to be the...
C - Jeep 4000/4700 (Jeep Grand CherokeeJeep Grand CherokeeThe Jeep Grand Cherokee is a Mid-size SUV produced by the Jeep division of Chrysler. While some other SUVs were manufactured with body on frame construction, the Jeep Grand Cherokee has always used a unibody chassis.- Development :...
) - Mitsubishi Pajero Sport
- Mitsubishi OutlanderMitsubishi OutlanderThe Airtrek was first introduced to the Japanese market on June 20, 2001, priced from ¥1.7–2.3 million. It offered a choice of either a 4G63 2.0 L or a 4G64 2.4 L GDI, mated to a standard INVECS-II 4-speed semi-automatic transmission. Both front- and four-wheel drive were available...
Factories
Beijing Benz has a production base at the Beijing Economic & Technological Development Area. Another plant opened in 2010. This opening may have increased potential Beijing Benz production capacity to 300,000 units/year. Such unit counts may consider engines and automobiles as discrete. A future engine-making production base is scheduled to become operational in 2013.See also
- Beijing Automobile WorksBeijing Automobile WorksBeijing Automobile Works , sometimes abbreviated as BAW, is a Chinese car manufacturer based in Beijing. BAW produces light off-road vehicles and trucks. BAW produces civilian as well as military vehicles.-History:...
(BAW) - Beijing Automotive Industry Holding Co Ltd (BAIC)
External links
- Beijing-Benz DaimlerChrysler Automotive (in Chinese)