(Yicai Global) June 5 -- Beijing Automotive Group Co. (BAIC) signed a framework agreement with its German partner Daimler AG [ETR:DAI] (Daimler) on furthering their strategic cooperation on June 1.
As a vital part of the framework agreement, Daimler is to invest in Beijing Electric Vehicle Co. (BAIC BJEV), a BAIC subsidiary, to deepen their cooperation in new-energy vehicles (NEVs).
Per the agreement, both parties will introduce Daimler's NEV products to Beijing Benz Automotive Co., and BAIC Motor Co., Ltd. [HK:01958] will act as the investor together with Daimler to upgrade the current production facilities of Beijing Benz and prepare for new products. Neither party disclosed its detailed investment amounts in BAIC BJEV nor their cooperative form.
"This agreement marks a critical step for both parties in the future NEV field. We will make full use of the respective advantages of NEV technologies and market operation to achieve win-win results, and strive to be a model for the coordination of the Made in China 2025 and Germany's Industry 4.0 strategies," said Xu Heyi, board chairman of BAIC.