(Yicai Global) Dec. 27 -- German carmaker Daimler is extricating itself from its new energy vehicle joint venture with Chinese auto manufacturer BYD after the JV failed to deliver in ten years of operations.

Daimler plans to reduce its stake in Shenzhen Denza New Energy Automotive to 10 percent from 50 percent and Shenzhen-based BYD will hold the remainder, the company said on Dec. 24. No details were given about the value of the transaction. The deal is still subject to regulatory approval.

“The strong support in operations by BYD will facilitate the future success of Denza, while Daimler stays committed as a shareholder. Both Daimler and BYD remain dedicated to their successful long-term partnership,” Stuttgart-based Daimler said.

Denza New Energy was the first JV formed between a Chinese and foreign carmaker that only focused on new energy autos back in 2010. Its first model, the Denza 300, hit the market in 2014 at a starting price of CNY369,000 (USD58,000). The Denza 400 and Denza 500 followed shortly afterwards.

But the marque failed to make an impression due to its high pricing and the public's lack of familiarity with the brand and monthly sales have fallen below 1,000 units. The JV has needed repeated capital injections to cover its high research and development costs and other outlays. On Dec. 24, BYD and Daimler said they were each injecting another CNY1 billion (USD157 million) into the unit to fund product development and supplement working capital.

Editor: Kim Taylor