Girish Mahajan (Editor)

Beijing Benz

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Type
  
Private joint venture

Area served
  
China

Website
  
www.bbac.com.cn/

Founded
  
1984

Industry
  
Automotive

Products
  
Automobiles

Headquarters
  
Beijing

Parent organization
  
American Motors

Beijing Benz httpsuploadwikimediaorgwikipediaen669Bei

Owner
  
Beijing Automotive Group (50%) Daimler AG (50%)

Mercedes production manufacturing plant in china beijing benz automotive autogef hl


Beijing Benz (officially Beijing Benz Automotive Co., Ltd) is an automotive manufacturing company headquartered in Beijing, China, and a joint venture between Beijing Automotive Group and Daimler AG. Since its founding in 1984, the company has kept the same Chinese co-owner but has had several foreign co-owners.

Contents

As of 2016, Beijing Benz assembles and manufactures the Mercedes-Benz E-Class (long wheelbase), and C-Class in China.

While Beijing Benz 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.

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, Beijing Benz's production capacity was estimated at 100,000 units/year although that figure may consider engines and vehicles as discrete, and the company was likely able to produce only half that number of whole vehicles.

Beijing benz automotive co ltd bbac


History

While its history can be traced back to the oldest of the Chinese auto-making joint ventures with a Western partner, Beijing Benz was established in 2005 and is currently owned by Beiqi and Daimler AG.

American Motors

Beijing Benz grew out of what was originally the Beijing Jeep Corporation (Chinese: 北京吉普汽车有限公司), China's first Sino-western automotive joint venture having been 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 more-modern automotive technology; Beijing Jeep suited the needs of both parties and produced the American Motors Jeep Cherokee (XJ) in Beijing. While talks began in the late 1970s, operation started in 1985. Assembly of the Cherokee continued after Chrysler purchased American Motors as did production of the classic Beijing BJ212-based SUVs.

Beijing Jeep has since become well known as an example of early FDI in China. Its pitfalls and successes are pored over in case studies, and such academic reports sometimes compare the marketing strategy of Beijing Jeep with that of Shanghai Volkswagen, another early Sino-foreign joint venture.

Chrysler

When Chrysler purchased American Motors in 1987, 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 the Jeep Grand Cherokee, Mitsubishi Pajero Sport, and the Mitsubishi Outlander, as well as some Beijing Jeep-branded, locally developed vehicles. Chrysler no longer had any ownership in Beijing Jeep as of early 2009 due to the failure of its attempt to acquire the maker of Mercedes-Benz models. That German company, Daimler, kept the profitable China manufacturing operation for itself once it was clear the merger was a failed prospect. Domestic manufacture of Jeep-branded vehicles ceased in 2006. Newer Jeep models are now being produced at a joint venture between Guangzhou Automobile Group and Fiat Chrysler Automobiles, current owner of the Chrysler and Jeep brands, however.

Daimler AG

During Chrysler's short-lived partnership with Daimler AG, maker of Mercedes-Benz cars, production at Beijing Jeep was expanded to include Mercedes-Benz-branded products. Its legal name was changed to Beijing Benz-DaimlerChrysler Automotive Co Ltd, with then German Chancellor Gerhard Schroeder in attendance at the 2004 naming ceremony. While Chrysler was removed from the company in 2009, it remained in its legal name for several more years.

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 was assembled from knock-down kits, with a low localization rate of about 30%.

Incidentally, Daimler had previously cooperated with FAW Group to produce the then-recently discontinued Mercedes-Benz W123 (200 and 230E) sedans although these did not prove popular. Between January 1988 and sometimes in 1990, a mere 828 units were assembled in Changchun most of which were 230s. A few dozen of the long wheelbase 230E (V123) were among the cars assembled.

Operations

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.

Government procurement

As of 2009, Beijing Benz products, alongside those of several other makes, are purchased for use by Chinese State officials such as ministers and provincial heads. A First Automobile Works Audi is the traditional choice for this purpose.

Current

  • Mercedes-Benz C-Class (W205 C180L, C200L, C260L, C300L, C200, C200 4MATIC, C300)
  • Mercedes-Benz E-Class (V212 E180L, E200L, E260L, E320L, E400L, E400L HYBRID)
  • Past

  • Beijing BJ212, later BJ2020/2024/2025/2032
  • Jeep BJ2021/7250 Cherokee (based on the Jeep Cherokee (XJ), this was the original vehicle produced by Beijing Jeep from 1983 to 2005)
  • Jeep 2500/2700
  • Chrysler 300C (2004-2010)
  • Jeep 4000/4700 (Jeep Grand Cherokee)
  • Mitsubishi Pajero Sport (2003-2008)
  • Mitsubishi Outlander
  • Mercedes-Benz E-class (W211)
  • Mercedes-Benz C-class (W204)
  • Mercedes-Benz GLK-Class (2008-2016) (X204 GLK200, GLK260 4MATIC, GLK300 4MATIC)
  • References

    Beijing Benz Wikipedia