Company:Beijing Benz

From HandWiki
Beijing Benz Automotive Co., Ltd.
Typejoint venture
IndustryAutomotive industry
Founded1984 (1984)
Headquarters
Beijing
,
China
Area served
China
ProductsAutomobiles
OwnerBAIC Motor (51%)
Daimler AG (49%)
ParentBAIC Motor
Websitewww.bbac.com.cn/
Beijing Benz
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Beijing Benz (officially Beijing Benz Automotive Co., Ltd) is an Automotive industry manufacturing company headquartered in Beijing, China , and a joint venture between BAIC Motor and Daimler AG.[1][2]

Originally established in 1984 as Beijing Jeep Corporation (Chinese: 北京吉普汽车有限公司) by BAIC Motor with American Motors Corporation (AMC), it was the first Chinese auto-making joint venture with a Western partner. It continued after AMC was acquired by Chrysler in 1987 and after Chrysler merged with German automaker Daimler-Benz AG in 1998.

As of 2016, Beijing Benz assembles and manufactures the Mercedes-Benz E-Class (long wheelbase), and C-Class in China.[3]

History

The history of this company goes back to Beijing Jeep Corporation (BJC), which was the first Sino-foreign automobile joint venture in China.[4] It became a prototype for future cooperative projects and BJC became a test case revealing problems, both political and economic, that would appear for other investors the Chinese hoped to attract.[5]

The current name, Beijing Benz, was established in 2005 and the enterprise now owned by Beiqi and Daimler AG.[6]

American Motors

Beijing BJ2021, a Jeep XJ with raised roof and longer wheelbase for more rear passenger room

Beijing Benz grew out of what was originally the Beijing Jeep Corporation (Chinese: 北京吉普汽车有限公司), China's first Sino-western automotive joint venture having been established in 1984 with American Motors Corporation.[7]

American Motors began negotiations in 1979 to sell its vehicles in China and gain access to then low-cost Chinese labor.[8] The Chinese wanted more-modern automotive technology; Beijing Jeep suited the needs of both parties and produced the American Motors Jeep Cherokee (XJ) in Beijing.[8] While talks began in the late 1970s, operation started in 1985.[9] The initial investment by AMC was $8 million.[10] Assembly of the Cherokee continued after Chrysler purchased American Motors as did production of the classic Beijing BJ212-based SUVs.[8]

Beijing Jeep has since become well known as an example of early FDI in China.[11] Its pitfalls and successes are pored over in case studies, and such academic reports sometimes compare the marketing strategy of Beijing Jeep with that of Shanghai Volkswagen, another early Sino-foreign joint venture.[12]

Chrysler

Beijing BJ2500 in 2004, a Jeep XJ with a facelifted front end

When Chrysler purchased American Motors in 1987,[13] 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 the Jeep Grand Cherokee, Mitsubishi Pajero Sport, and the Mitsubishi Outlander, as well as some Beijing Jeep-branded, locally developed vehicles.[citation needed] Chrysler no longer had any ownership in Beijing Jeep as of early 2009 due to the failure of its attempt to acquire the maker of Mercedes-Benz models. That German company, Daimler, kept the profitable China manufacturing operation for itself once it was clear the merger was a failed prospect.[14] Domestic manufacture of Jeep-branded vehicles ceased in 2006.[15] Newer Jeep models are now being produced at a joint venture between Guangzhou Automobile Group and Fiat Chrysler Automobiles, current owner of the Chrysler and Jeep brands, however.[16]

Daimler AG

During Chrysler's short-lived partnership with Daimler AG, maker of Mercedes-Benz cars, production at Beijing Jeep was expanded to include Mercedes-Benz-branded products. Its legal name was changed to Beijing Benz-DaimlerChrysler Automotive Co Ltd,[7] with then German Chancellor Gerhard Schroeder in attendance at the 2004 naming ceremony.[7] While Chrysler was removed from the company in 2009, it remained in its legal name[14] for several more years.

The company started producing the Mercedes-Benz E-Class locally in 2006 and the C-Class in 2008.[17] Manufacture of Chrysler-branded models continued until at least 2008.[18] This included the 300C and Sebring, which were both locally produced and imported.[19]

Prior to 2010, the E-Class was assembled from knock-down kits with a low localization rate of about 30%.[20]

Incidentally, Daimler had previously cooperated with FAW Group to produce the then-recently discontinued Mercedes-Benz W123 (200 and 230E) sedans although these did not prove popular. Between January 1988 and sometimes in 1990, a mere 828 units were assembled in Changchun most of which were 230s.[21][22] A few dozen of the long wheelbase 230E (V123) were among the cars assembled.[22]

Operations

Beijing Benz has a production base at the Beijing Economic & Technological Development Area.[23] Another plant opened in 2010.[24] This opening may have increased potential Beijing Benz production capacity to 300,000 units/year.[18] Such unit counts may consider engines and automobiles as discrete. A future engine-making production base is scheduled to become operational in 2013.[17]

While Beijing Benz does not produce all the Mercedes-branded autos sold on the Chinese market.[25] Some Mercedes offerings, the S-Class for example, are imported by Mercedes-Benz (China) Ltd.[26]

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.[27]

Sales in 2010 were expected to reach 50,000 cars,[24] but total Mercedes-Benz sales in China including imports were near 150,000.[17] In 2008, Beijing Benz's production capacity was estimated at 100,000 units/year[18] 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.

Models

Current

  • Mercedes C-Class W205 63 AMG S (China)

  • Mercedes E-Class V212 facelift

  • Mercedes GLC China

Past

  • BJ212

  • Beijing Jeep 2500

  • Chrysler 300C

  • Chrysler Sebring JS China

  • Mitsubishi Outlander China

  • Mercedes E-Class W211 China

  • Mercedes C-Class W204 China

  • Mercedes GLK-Class facelift

See also

References

  1. ↑ "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. 
  2. ↑ "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. 
  3. ↑ 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. 
  4. ↑ Gallagher, Kevin (2010). Handbook on Trade and the Environment. Edward Elgar Publishing. p. 152. ISBN 9781848446045. https://books.google.be/books?id=LpHiobgEuMgC&pg=PA152&lpg=PA152&dq=Beijing+Jeep+Corporation+(BJC)+was+the+first+Sino-foreign+automobile+joint+venture+in+China. Retrieved 2 January 2018. 
  5. ↑ Harwit, Eric (2016). China's Automobile Industry: Policies, Problems and Prospects: Policies, Problems and Prospects. Routledge. ISBN 9781315286792. https://books.google.be/books?id=aooYDQAAQBAJ&pg=PT68&lpg=PT68&dq=The+company+would+be+a+test+case,+one+that+would+reveal+the+kinds+of+problems,+both+political+and+economic,+that+would+appear+for+other+investors+the+Chinese+hoped+to+attract. Retrieved 2 January 2018. 
  6. ↑ 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. 
  7. ↑ 7.0 7.1 7.2 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. 
  8. ↑ 8.0 8.1 8.2 Mann, Jim (1997). Beijing Jeep: A Case Study of Western Business in China. Westview Press. ISBN 978-0-8133-3327-4. https://books.google.com/books?id=zss6RUl6UDYC&lpg=PP1&dq=beijing%20jeep%20a%20case%20study%20of%20western%20business%20in%20china. Retrieved 9 March 2011. 
  9. ↑ 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 ..."
  10. ↑ Dunne, Michael J. (23 October 2008). "What Happened to Beijing Jeep? - The Car Connection". The Car Connection. https://www.thecarconnection.com/tips-article/1001420_what-happened-to-beijing-jeep. Retrieved 2 January 2018. 
  11. ↑ Needle, David (2010). Business in Context: An Introduction to Business and Its Environment (5 ed.). Cengage Learning EMEA. pp. 42–44. ISBN 978-1-84480-613-3. https://books.google.com/books?id=kJsDgcqM6tcC&lpg=PP1&dq='Business%20in%20Context&pg=PA42#v=onepage&q&f=false. 
  12. ↑ Gu, Zhibin; Frank, Andre Gunder (2006). China's global reach: markets, multinationals, and globalization. Fultus. pp. 84–86. ISBN 978-1-59682-093-7. https://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. 
  13. ↑ Adler, Dennis (2000). Chrysler. MotorBooks International. pp. 15. ISBN 9781610608718. https://books.google.com/books?id=DALX2AsrZTcC&lpg=PA15&dq=chrysler%20american%20motors&pg=PA15#v=onepage&q=chrysler%20american%20motors&f=false. 
  14. ↑ 14.0 14.1 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. 
  15. ↑ Ramsey, Mike; Rogers, Christina (May 9, 2013). "Chrysler's Jeep Faces Uphill Climb in China". WSJ.com (Dow Jones & Company). https://www.wsj.com/articles/SB10001424127887324266904578461320642086556. Retrieved 19 September 2013. 
  16. ↑ "Marchionne Arrives Late To China Party with Fiat Viaggio". bloomberg.com (Bloomberg LP). Apr 23, 2012. https://www.bloomberg.com/news/2012-04-23/marchionne-arrives-late-to-china-party-with-fiat-viaggio.html. Retrieved 19 September 2013. 
  17. ↑ 17.0 17.1 17.2 "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. 
  18. ↑ 18.0 18.1 18.2 "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. 
  19. ↑ "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. 
  20. ↑ 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.
  21. ↑ Sutcliffe, Ashley (2011-06-01). "The Cherokees that sparked revolution". chinadaily.com.cn. China Daily. http://www.chinadaily.com.cn/china/cd30th/2011-06/01/content_12632372.htm. Retrieved 9 December 2014. 
  22. ↑ 22.0 22.1 "比奥迪国产早1年 奔驰E级9代车型历史解析" (in Chinese). www.cnfol.com. 2011-07-07. http://auto.cnfol.com/110707/169,1684,10214074,00.shtml. Retrieved 2014-12-11. 
  23. ↑ 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. 
  24. ↑ 24.0 24.1 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. 
  25. ↑ "Motoring: Short Torque". China Daily. 20 December 2010. http://www.chinadaily.com.cn/cndy/2010-12/20/content_11724308.htm. Retrieved 9 March 2011. 
  26. ↑ "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. 
  27. ↑ Shasha, Deng, ed (13 June 2009). "Chinese public revved up over BMW, Benz on gov't car list". xinhuanet.com. Archived from the original on 7 November 2012. https://web.archive.org/web/20121107064513/http://news.xinhuanet.com/english/2009-06/13/content_11538089.htm. Retrieved 9 March 2011. 
  28. ↑ Dunne, Timothy (November 2, 2007). "Can Chrysler Rebound in China?". Business Week. Archived from the original on January 6, 2008. https://web.archive.org/web/20080106161000/http://www.businessweek.com/globalbiz/content/nov2007/gb2007112_737100.htm. Retrieved 14 August 2008. 
  29. ↑ "Beijing built Mercedes GLK pops out for pictures with minor facelift and 2.0T". chinacartimes.com. July 14, 2011. http://www.chinacartimes.com/2011/07/14/beijing-built-mercedes-glk-pops-out-for-pictures-with-minor-facelift-and-2-0t/. Retrieved June 22, 2012. 

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