Beijing Benz
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| Type | Private joint venture |
|---|---|
| Industry | Automotive |
| Founded | 1984 |
| Headquarters | Beijing, China |
| Area served | China |
| Products | Automobiles |
| Owner(s) | Beijing Automotive Group (50%) Daimler AG (50%) |
| Website | www.bbac.com.cn/ |
Beijing Benz (officially Beijing Benz Automotive Co., Ltd.) is an automotive manufacturing company headquartered in Beijing, China and a joint venture between Beijing Automotive Group and Daimler AG.[1][2] Since its founding in 1984 the company has kept the same Chinese part-owner but has had several foreign part-owners. Beijing Benz assembles and manufactures the Mercedes-Benz E-Class and C-Class in China.[3] These will soon be joined by the GLK-Class.[4] While Beijing Benz does not produce all the Mercedes-branded autos sold on the Chinese market, such cars currently enjoy a reputation for high quality and popularity.[5] Some Mercedes offerings, the S-Class for example, are imported by Mercedes-Benz (China) Ltd.[6] Mercedes Benzes are, alongside FAW Group Audis, Brilliance Auto BMWs, and Lexuses, some of the only Western luxury cars to have gained popularity in the Chinese market.[7]
Sales in 2010 were expected to reach 50,000 cars,[8] but total Mercedes Benz sales in China including imports were near 150,000.[4] In 2008 Beijing Benz's production capacity was estimated at 100,000 units/year,[9] although that figure may consider engines and vehicles as discrete and the company was likely able to produce only half that number of whole vehicles.
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[edit] History
While its history can be traced back to the oldest of the Chinese auto-making joint ventures with a Western partner, Beijing Benz was established in 2005 and is currently owned by Beiqi and Daimler AG.[10]
[edit] American Motors
Beijing Benz's origins begin with the Beijing Jeep Corporation (Chinese: 北京吉普汽车有限公司), which became China's first Sino-western automotive joint venture when it was established in 1984[11] with American Motors Corporation.[12][13][14]
American Motors began negotiations in 1979 to sell its vehicles in China and to gain access to then low-cost Chinese labor.[15] The Chinese wanted access to more-modern automotive technology; Beijing Jeep suited the needs of both parties and produced the American Motors Jeep Cherokee (XJ) in Beijing.[15] Almost six years after talks on the joint venture had begun the first Jeep Cherokee rolled off the assembly line on 26 September 1985.[16] Assembly of the Cherokee continued after Chrysler's buyout of American Motors as did production of the classic Beijing BJ212-based SUVs.[15] Beijing Jeep has since become emblematic as a case study of early FDI in China.[17][18][19] These studies typically compare the marketing strategies of Beijing Jeep and Shanghai Volkswagen.[20][21]
[edit] Chrysler
Chrysler's purchase of American Motors and its Jeep brand came with an unexpected boon, Beijing Jeep. A few Chrysler models were subsequently added to the Chinese company's product line including Jeep Grand Cherokee, Mitsubishi Pajero Sport, and Mitsubishi Outlander, as well as some Beijing Jeep-branded, locally-developed vehicles.[citation needed] Chrysler left the joint venture in early 2009.[22] Production of newer Jeep models in China is planned to resume in 2011 with a joint venture between Guangzhou Automobile Group and Fiat.[23]
[edit] Daimler AG
During Chrysler's short-lived partnership with Daimler AG, maker of Mercedes-Benz cars, it was decided that the American company's Chinese joint venture would produce Mercedes-Benz-branded products. Beijing Jeep became Beijing Benz-DaimlerChrysler Automotive Co Ltd,[11] and while Chrysler was removed from the company in 2009, it remained in its legal name.[22] Then German Chancellor Gerhard Schroeder was a presence at the 2004 naming ceremony.[11]
The company started producing the Mercedes-Benz E-Class locally in 2006 and the C-Class in 2008.[4] Manufacture of Chrysler-branded models continued until at least 2008.[9] This included the 300C, which was both locally produced and imported.[24]
Prior to 2010 the E-Class may have been assembled from knock-down kits, and the localization rate for production was a scant 30%.[25] The component localization rate will rise to 70% and production capacity will increase to 100,000 units/year.[26]
[edit] Operations
Beijing Benz has a production base at the Beijing Economic & Technological Development Area.[27] Another plant opened in 2010.[8] This opening may have increased potential Beijing Benz production capacity to 300,000 units/year.[9] Such unit counts may consider engines and automobiles as discrete. A future engine-making production base is scheduled to become operational in 2013.[4]
[edit] Government procurement
As of 2009 Beijing Benz products, alongside those of several other makes, are purchased for use by Chinese State officials such as ministers and provincial heads.[28] A First Automobile Works Audi is the traditional choice for this purpose.[28]
[edit] Models
[edit] Current
- Mercedes-Benz C-Class
- Mercedes-Benz E-Class
- BJ2022 Brave Warrior (military vehicle)[29]
[edit] Past
- Beijing BJ212, later BJ2020/2024/2025/2032
- Jeep BJ2021/7250 Cherokee (based on the Jeep Cherokee (XJ), this was the original vehicle produced by Beijing Jeep from 1983 to 2005)[30]
- Jeep 2500/2700
- Chrysler 300C
- Jeep 4000/4700 (Jeep Grand Cherokee)
- Mitsubishi Pajero Sport
- Mitsubishi Outlander
[edit] See also
[edit] References
- ^ "Daimler Northeast Asia". Mercedes Benz China. http://www.mercedes-benz.com.cn/content/china/mpc/mpc_china_website/enng/home_mpc/passengercars/home/passengercars_world/about_company/daimler.html. Retrieved 9 March 2011.
- ^ "2009 Annual Report, 2. Significant acquisitions and dispositions of interests in companies and of other assets and liabilities". Daimler AG. http://ar2009.daimler.com/en/consolidated-financial-statements/notes/2-significant-acquisitions-and-dispositions-of-interests-in-companies-and-of-other-disposals-of-assets-and-liabilities.html. Retrieved 9 March 2011.
- ^ For assembly of vehicles, see "2009 Annual Report, 34. Related Party Relationships". Daimler AG. http://ar2009.daimler.com/en/consolidated-financial-statements/notes/34-related-party-relationships.html. Retrieved 9 March 2011.
- For manufacture of vehicles, see "2009 Annual Report, 2. Significant acquisitions and dispositions of interests in companies and of other assets and liabilities". Daimler AG. http://ar2009.daimler.com/en/consolidated-financial-statements/notes/2-significant-acquisitions-and-dispositions-of-interests-in-companies-and-of-other-disposals-of-assets-and-liabilities.html. Retrieved 9 March 2011.
- For models produced, see "About Us". Daimler AG. http://www.bbac.com.cn/about-us/. Retrieved 24 July 2011.
- ^ a b c d "Daimler Expands Activities in China". Daimler AG. 28 June 2011. http://www.daimler.com/dccom/0-5-7171-1-1404186-1-0-0-0-0-1-8-7164-0-0-0-0-0-0-0.html. Retrieved 24 July 2011.
- ^ "Motoring: Short Torque". China Daily. 20 December 2010. http://www.chinadaily.com.cn/cndy/2010-12/20/content_11724308.htm. Retrieved 9 March 2011.
- ^ "Mercedes-Benz S-Class is a leader in innovation". Global Times. Shanghai Daily. 1 September 2010. http://www.globaltimes.cn/www/english/autos/auto-china/industry/2011-01/569088.html. Retrieved 9 March 2011.
- ^ Shirouzu, Norihiko (7 June 2011). "Chinese Begin Volvo Overhaul". Wall Street Journal. http://online.wsj.com/article/SB10001424052702304563104576363041069364856.html. Retrieved 27 August 2011.
- ^ a b Zheng, Amanda (6 December 2010). "Beijing Benz 2010 sales expected to hit 50,000 units, up 179%". Automotive News (gasgoo.com). http://autonews.gasgoo.com/china-news/beijing-benz-2010-sales-expected-to-hit-50-000-uni-101206.shtml. Retrieved 9 March 2011.
- ^ a b c "BBDC Improves Budget Management and Keeps Pace with Fast-Changing Automotive Market". oracle.com. November 2008. http://www.oracle.com/customers/snapshots/beijing-benz-daimlerchrysler-automotive-hyperion-case-study.pdf. Retrieved 9 March 2011.
- ^ For pedigree, see Qiao, Yu (7 December 2004). "JV renamed Beijing Benz-DaimlerChrysler". China Daily. http://www.chinadaily.com.cn/english/doc/2004-12/07/content_397951.htm. Retrieved 9 March 2011.
- For year established, see "Daimler Northeast Asia". Mercedes Benz China. http://www.mercedes-benz.com.cn/content/china/mpc/mpc_china_website/enng/home_mpc/passengercars/home/passengercars_world/about_company/daimler.html. Retrieved 9 March 2011.
- ^ a b c Qiao, Yu (7 December 2004). "JV renamed Beijing Benz-DaimlerChrysler". China Daily. http://www.chinadaily.com.cn/english/doc/2004-12/07/content_397951.htm. Retrieved 9 March 2011.
- ^ Qiao, Yu (7 December 2004). "JV renamed Beijing Benz-DaimlerChrysler". China Daily. http://www.chinadaily.com.cn/english/doc/2004-12/07/content_397951.htm. Retrieved 9 March 2011.
- ^ Mann, Jim (1997). Beijing Jeep: A Case Study of Western Business in China. Westview Press. ISBN 9780813333274. http://books.google.com/books?id=zss6RUl6UDYC&lpg=PP1&dq=beijing%20jeep%20a%20case%20study%20of%20western%20business%20in%20china. Retrieved 9 March 2011.
- ^ China shifts gears: automakers, oil, pollution, and development Page 47 Kelly Sims Gallagher - 2006 "China's First Experiment with a Foreign Joint Venture Beijing Jeep Corporation (BJC) was the ... The pioneering spirit once associated with Beijing Jeep flagged during the 1990s, and the joint venture ..."
- ^ a b c Mann, Jim (1997). Beijing Jeep: A Case Study of Western Business in China. Westview Press. ISBN 9780813333274. http://books.google.com/books?id=zss6RUl6UDYC&lpg=PP1&dq=beijing%20jeep%20a%20case%20study%20of%20western%20business%20in%20china. Retrieved 9 March 2011.
- ^ Doing business in China: the last great market - Page 192 Geoffrey Murray - 1994 "BEIJING JEEP Finally in this chapter, I want to return to the ongoing story of Beijing Jeep. When the first Cherokee rolled off the assembly line on 26 September 1985 - almost six years after talks on the joint venture had begun - an ..."
- ^ Needle, David (2010). Business in Context: An Introduction to Business and Its Environment (5 ed.). Cengage Learning EMEA. pp. 42–44. ISBN 9781844806133. http://books.google.com/books?id=kJsDgcqM6tcC&lpg=PP1&dq='Business%20in%20Context&pg=PA42#v=onepage&q&f=false.
- ^ Baker, Kevin James (2007). "The Beijing Jeep and the Threat from China". Economic tsunami: China's car industry will sweep away western car makers. Rosenberg Publishing. pp. 51–63. ISBN 9781877058561. http://books.google.com/books?id=x7reX_AWz48C&pg=PA51&dq=Economic+tsunami:+China's+car+industry+will+sweep+away+western+car&source=gbs_toc_r&cad=4#v=onepage&q&f=false. Retrieved 27 August 2011.
- ^ Ahlstrom, David; Bruton, Garry D. (2009). International Management: Strategy and Culture in the Emerging World. Cengage Learning. p. 164. ISBN 9780324406313. http://books.google.com/books?id=HqUZ-aeWENIC&lpg=PP1&dq='International%20Management%3A%20Strategy%20and%20Culture%20in%20the%20Emerging%20World&pg=PA164#v=onepage&q&f=false.
- ^ Gu, Zhibin; Frank, Andre Gunder (2006). China's global reach: markets, multinationals, and globalization. Fultus. pp. 84–86. ISBN 9781596820937. http://books.google.com/books?id=ds9XjOmOYcgC&lpg=PP1&dq=China's%20global%20reach%3A%20markets%2C%20multinationals%2C%20and%20globalization&pg=PA84#v=onepage&q&f=false.
- ^ McGunagle, Doreen M. (2007). Romancing the big dragon: The impact of foreign entry into the Chinese automobile industry. ProQuest. p. 69. ISBN 9780542994333. http://books.google.com/books?id=3PFILijeX_AC&lpg=PP1&dq=Romancing%20the%20big%20dragon&pg=PA69#v=onepage&q&f=false. "Beijing Jeep Market Share and Capacity Utilization Chrysler's overall prices ranged from $10,613 to $55,690. Chrysler's base model of the Cherokee was $10,613. The prices were not as low as those of Shanghai VW for their basic model"
- ^ a b Gao, George (17 May 2010). "Guangzhou-Fiat JV to make Chrysler Jeep in Changsha". Automotive News (gasgoo.com). http://autonews.gasgoo.com/auto-news/1015204/Guangzhou-Fiat-JV-to-make-Chrysler-Jeep-in-Changsha.html. Retrieved 9 March 2011.
- ^ Schmitt, Bertel (17 May 2010). "The Jeep Returns To China". The truth about cars. http://www.thetruthaboutcars.com/the-jeep-returns-to-china/. Retrieved 9 March2011.
- ^ "Beijing Benz-DaimlerChrysler recalls defective sedans". China Daily. Xinhua. 7 June 2007. http://www.chinadaily.com.cn/china/2007-06/07/content_889631.htm. Retrieved 9 March 2011.
- ^ For knock-down assembly of E-Class, see "China's domestically-made Mercedes-Benz E-Class sedans to get off the line in Beijing". China Business News. Shanghai: May 31, 2010.
- For component localization rate of 30%, see Mercedes-Benz seeking higher localization rate in China globaltimes.cn, October 27, 2010[dead link]
- ^ Mercedes-Benz seeking higher localization rate in China globaltimes.cn, October 27, 2010[dead link]
- ^ For Beijing Economic & Technological Development Area, see "Daimler Northeast Asia". Mercedes Benz China. http://www.mercedes-benz.com.cn/content/china/mpc/mpc_china_website/enng/home_mpc/passengercars/home/passengercars_world/about_company/daimler.html. Retrieved 9 March 2011.
- For 15kM from Daxing Caiyu, see "Part Overview". Beijing Hainachuan Automotive Parts Co., Ltd. 2008. http://english.bhap.com.cn/Industrial-base/Park-Overview/. Retrieved 9 March 2011.
- ^ a b Shasha, Deng, ed. (13 June 2009). "Chinese public revved up over BMW, Benz on gov't car list". xinhuanet.com. http://news.xinhuanet.com/english/2009-06/13/content_11538089.htm. Retrieved 9 March 2011.
- ^ The people's Hummer: China's Brave Warrior, Autoblog
- ^ Dunne, Timothy. "Can Chrysler Rebound in China?" Business Week, November 2, 2007. Retrieved on January 22, 2008.
[edit] External links
- Beijing-Benz DaimlerChrysler Automotive (in Chinese)
