BAIC Motor Corporation Ltd. has signed an agreement with German company Daimler to invest 4 billion RMB for an engine plant. The president of BAIC said it would be built as a large one and produce new products that could support all the Benz vehicles in the world.
The Daimler board of directors said localization was key for sustainable development and further success in China. The agreement is a milestone for Daimler and BAIC and gives Daimler more confidence in China, which is the largest passenger vehicles market.
The plant’s site and commencement date have not been disclosed yet.