Daimler to Expand Local Production in China

Daimler AG has pledged to invest €1 billion in China to expand local production of compact car models with partner BAIC Motor Corp.

The first of the new models, the GLA-Class compact SUV, will launch next spring.

Daimler and BAIC currently assemble Mercedes-Benz GLK- C- and E-Class models in China through their Beijing Benz Automotive Co. Ltd. venture.

BBAC plans to more than double overall annual capacity to at least 200,000 units by the end of 2015, bringing the combined investment in their venture to €4 billion.

Daimler and BAIC also produce commercial trucks through their Beijing Foton Daimler Automotive Co. Ltd. venture.