Beijing Benz-DaimlerChrysler Automotive Co Ltd (BBDC), a joint venture between German-US auto giant DaimlerChrysler AG and the State-owned Beijing Automotive Industry Holding Co (BAIC), celebrated the opening of its new manufacturing facility in Beijing on Friday.

"It opens a new chapter in DaimlerChrysler's long history in China," said Dieter Zetsche, chairman of DaimlerChrysler AG's board of management and head of the Mercedes Car Group.

"It is also a milestone for the whole DaimlerChrysler group, for this world-class manufacturing facility is also the first plant of our group in the world to produce vehicles under the brands of both DaimlerChrysler and Mercedes-Benz."

Pouring US$200 million into the BBDC plant is part of DaimlerChrysler's US$1.5 billion middle-term investment in Northeast Asia and a pillar of its strategy in this district, Zetsche said.

He added that DaimlerChrysler would be adding more sedan models into the local production through BBDC.

The plant, located in the Beijing Development Area in the southeastern part of the capital, has produced Mercedes-Benz E-Class and Mitsubishi Outlander sedans since last December. It will soon begin producing Chrysler 300C sedans for a launch in November.

With 20 months' preparation, the first phase of the facility has achieved an annual production capacity of 800,000 units.

Gnter Butschek, president and chief executive officer of BBDC, told China Daily that 4,100 Mercedes-Benz E-Class sedans have rolled off the production line so far.

The company expects an annual production of 25,000 Mercedes-Benz vehicles and 80,000 Chrysler and Mitsubishi Motors Corp (MMC) vehicles this year, with room to expand as needed.

"DaimlerChrysler will not build the second joint venture in Beijing and never import any models that are locally produced" according to the joint venture agreement, said An Qingheng, chairman of BAIC and BBDC.

"So we feel very proud and will insist in the commitment together with DaimlerChrysler to China's market, to offer world-class Mercedes-Benz and DaimlerChrysler sedans with worldwide quality standards."

BBDC, renamed from Beijing Jeep Corp, shows that "BAIC is working closely with DaimlerChrysler to reach for new heights. It will play an important role in the development of Beijing's automotive industry," An added.

Beijing Vice-Mayor Zhao Fengtong also expressed the government's hope and confidence in the world-class vehicles' local production centre. "We hope BBDC will set the pace to drive independent innovation in the Beijing auto industry."

"It sets a new benchmark in the automotive industry and is a symbol of the success of our long-term partnership with BAIC," said Zetsche. "We are grateful to China's central government and the Beijing municipal government for their ongoing partnership and support."

The manufacturing site includes Mercedes Car Group and Chrysler Group/MMC facilities, as well as a paint shop, stamping facility, logistics hall, environmental centre and energy management centre. The Mercedes Car Group and Chrysler Group/MMC facilities each include separate body shops and assembly areas designed to accommodate the specifications for each brand.

Source: China Daily