Daimler Launches Engine Production in China

Daimler AG has begun production at a new $542 million engine facility outside Beijing.

The factory has initial capacity to build 250,000 4- and 6-cylinder engines annually. It will supply powerplants for C- and E-Class Mercedes-Benz sedans made by Daimler's joint venture with Chinese BAIC Motor Group and vans made by its Fujian Benz Automotive Co. venture.

The plant is Daimler's first passenger vehicle engine facility outside Germany. It also is the first to adopt the company's new flexible production process, which enables multiple engines to be produced on the same line.