German car manufacturer Daimler has signed an agreement with Chinese joint venture partner BAIC Motor to upgrade the Mercedes-Benz factory in Beijing, ready for the production of new energy vehicles (NEVs). The deal is worth €500 million ($650 million) and will be completed by mid-2018, according to a statement from Daimler. In September, the Chinese government issued a draft policy stipulating that 8% of new car sales must be NEVs by 2018, rising to 10% in 2019 and 12% in 2020.
German car manufacturer Daimler has signed an agreement with Chinese joint venture partner BAIC Motor to upgrade the Mercedes-Benz factory in Beijing, ready for the production of new energy vehicles (NEVs). The deal involves Daimler taking a minority share in Beijing Electric Vehicle, a subsidiary of BAIC, and comes after Germany persuaded China to cut back on proposed quotas for NEVs. In September, the Chinese government issued a draft policy stipulating that 8% of new car sales must be NEVs by 2018, rising to 10% in 2019 and 12% in 2020.