Daimler Begins Trial Production at China Plant image

Daimler has started trial production at its engine plant in China and full operation is to begin alter this year.

Daimler began construction of this plant in July 2011 and it is a subsidiary of Beijing Benz Automobile, a JV between BAIC, Daimler Greater China and Daimler AG. The plant is expected to be fully operational by October, when it will produce three types of Mercedes engines: the M276, the M274 and the M270. The initial capacity will be 300,000 units annually and the engines will be installed in the cars produced by BBAC and Fujian Daimler, which is another Daimler JV that manufactures Mercedes Viavo, Sprinter and Vito vans.

“The construction and operation of the new Mercedes-Benz engine plant is a breakthrough for BBAC in the field of core automobile technologies,” said Xu Heyi, BBAC board chairman.

He added that Daimler decision to produce Mercedes engines in China indicates that the company is shifting its core technologies to this country. Cai Suping, BBAC’s senior executive vice president, said that this plant will help China further expand in core automobile parts and components, and will also boost Mercedes’ vehicles competitiveness in the region.

Source: Gasgoo Automotive News