Beijing Benz drives production in China despite market slump

A grand ceremony was held to mark the 10th anniversary of Beijing Benz Automotive on Aug 24. [Photo provided to China Daily]

Despite the market plunge, Sino-German joint venture Beijing Benz Automotive Co is still confident and planning to bring new locally made Mercedes models to Chinese consumers in the near future.

"We are very confident about the future," said Peter Schabert, the new president and CEO of BBAC on Aug 24, when the company celebrated its 10th anniversary in Beijing.

Schabert replaced Frank Deiss as the head of BBAC on Aug 1 and the event was his first public appearance in that role for the company. He signed a three-year, extendible contract with BBAC.

According to Schabert, the new locally produced GLC and C-Class SUV will hit the assembly line by the end of 2015.

Apart from new models, the company plans to raise its annual output from 150,000 vehicles last year to 200,000 this year, an annual increase of more than 33 percent, Schabert said.

The current premium vehicle market in China is a "challenge, but no risk for us", said Schabert.

Maintaining high quality production is the main challenge, Schabert said.

A clear plan, a variety of products and high quality standard are the keys to higher growth rates than the average growth rate of the country's vehicle market, said Chen Hongliang, senior executive vice-president of BBAC.

The company launched its long wheelbase C-Class last year and GLA-Class compact SUV in April. Other models in production include the long wheelbase E-Class and GLK-Class mid-sized SUV.

According to Chen, more than 50 percent of Mercedes-Benz models are made in China, and there will be more locally produced models in the future.

In July, the company received approval from the government to produce new-energy vehicles.

It is expected that Mercedes' first China-made plug-in hybrid model will hit the market later this year, and the company plans to make its own NEV models.

Established in 2005, Beijing Benz is a joint venture between BAIC Motor, Daimler AG and Daimler Greater China. Its business includes research and development, engine and completed vehicle manufacturing, sales and after-sales services.

Over the past 10 years, its output capacity rose six times, total industrial output value has risen eight times, and the size of the factory expanded by 1.5 times, the company said.

BBAC has become a key production hub and the largest plant worldwide, in terms of land size, for Mercedes-Benz passenger cars, said Hubertus Troska, chairman and CEO of Daimler Greater China and deputy chairman of BBAC.

"2015 marks a decade of a successful partnership between Daimler and BAIC, with our joint venture BBAC going from strength to strength over the years," Troska said.

BBAC shoulders the responsibility of leading the Chinese automobile industry during its transformation from "manufacturing" to "creating", said Xu Heyi, chairman of BAIC Group, and BBAC chairman.

"During the next 10 years, BBAC must focus on efficiency and profitability, while relying on its great products, being led by the brand, guded by the market, supported by a comprehensive system to continue its exploration and progress, so as to achieve its development goal of becoming an internationalized benchmark manufacturer in the Chinese premium passenger car market," Xu said.

duxiaoying1@chinadaily.com.cn