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Discussion Starter · #1 ·
March 2, 2009
Daimler AG and BYD Co., the Chinese carmaker backed by billionaire Warren Buffett, will jointly develop an electric vehicle to be sold in China, the world’s largest auto market.

Daimler, the world’s second-largest maker of luxury cars, and BYD signed an agreement to set up a “comprehensive” technology partnership to develop electric vehicles for the Chinese market, they said in a statement dated yesterday. The carmakers plan to develop a model that will be sold under a jointly owned new brand, they said.

BYD rose the most in almost three weeks in Hong Kong trading after the announcement. The Shenzhen, China-based battery maker entered the automobile market in 2003 and may benefit from Daimler’s experience in vehicle making, while Stuttgart, Germany-based Daimler plans to take advantage of BYD’s battery technology to help boost Chinese sales.

“The alliance will benefit from BYD’s expertise in batteries and Daimler’s strengths in traditional vehicles,” said Frank He, who rates BYD shares “buy” at BOC International in Hong Kong. Still, BYD’s electric-powered vehicle division isn’t expected to contribute significantly to company profits for at least two years, He said.

Daimler said last month it will focus on cleaner technologies to take global market share from rivals Bayerische Motoren Werke AG and Volkswagen AG’s Audi brand.

China Growth

BYD rose as much as 5.4 percent to HK$66.50 and traded at HK$65.25 as of 11:39 a.m. in Hong Kong.

The company was China’s sixth-biggest car manufacturer by sales last year. BYD, 10 percent owned by Buffett’s Omaha, Nebraska-based Berkshire Hathaway Inc., introduced a plug-in hybrid car in December 2008 and said in January it will sell an electric car in the U.S. this year.

China’s auto market grew to 13.6 million units in 2009, surpassing the U.S. for the first time. While overall passenger- car sales in the country grew 53 percent, BYD’s deliveries jumped 160 percent to about 450,000 vehicles, Chairman Wang Chuanfu said in January.

“China has the potential to be among the world’s largest markets for zero-emission vehicles,” Daimler’s Chief Executive Officer Dieter Zetsche and BYD’s Chuanfu said in the joint statement.

Daimler, founded in 1883, plans to introduce an all- electric version of its Mercedes Benz A-Class this year, according to today’s statement.

BYD signed a separate electric-vehicle agreement in May with Volkswagen, Europe’s largest automaker. Volkswagen and BYD will explore cooperation in areas including hybrid cars and lithium-battery powered electric vehicles, the Wolfsburg, Germany-based automaker said in a May 25 statement.

“It is a good strategy for BYD to have this rechargeable battery technology used by a full spectrum of car partners, from the low to high end, outside of China,” said Scott Laprise, an analyst at CLSA Asia Pacific Markets in Beijing. Laprise rates BYD “buy.”

http://www.businessweek.com/news/20...imler-to-form-china-electric-car-venture.html
 

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Re: BYD, Daimler to Form Electric-Car Venture

Good news for those of us interested in BYD and their new all-electric, the e6.

[Bayerische Motoren Werke AG] And this marks the first time I've seen what BMW stands for, too. That's the really important news here.

Just kidding.
 

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Re: BYD, Daimler to Form Electric-Car Venture

Hehe................the translation for "Bayerische Motoren Werke" is 'Bavarian Motor Works", but I do not know what the 'AG' stands for. I also see the 'AG' after the Daimler name as well, so I assume it's connected somehow with German corporations (such as the term 'LLC' for many american companies).

As far as BYD and Daimler deciding to co-op on a new model, the big news for me here will be the formation of a new BRAND - will this be a focus of Daimler, or of BYD? Will it be marketed as a "foreign" technology car? Will it have Daimler's (or Mercedes) name attached to it? How much will BYD be involved with this other than technology sharing? Lots of questions here, looking forward to hearing about this new BRAND in the near future. The introduction of a electric version of the Mercedes A class is also interesting, but I think it will be even more overpriced than the gasoline version (I've seen them in Hong Kong a lot - cute but way too much money for what the car is). Besides, the idea of a sub-compact Mercedes (at least for me) is kind of a oxymoron!:lol:
 

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Re: BYD, Daimler to Form Electric-Car Venture

jmsteiny-I believe that AG stands for auto group in both instances. Also, along the lines of your comments above, I think that the two together will put out separate BYD and Daimler all-electric automobiles, with their separate nameplates, using the best of each other's ingredients. That has me flat out excited, because for me it's between the Mitsubishi i-MiEV all-electric and BYD e6 all-electric for my first all-electric car. This has got to be construed as good news for those like us, huh?
 

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Ask the germans about vgerman :rolleyes: AG stands for Arbeits Gemeinschaft

Work Community / and or Work Partnership

Logan
 

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Re: BYD, Daimler to Form Electric-Car Venture

Actually the suffix AG has nothing to do with autos, and is a general term standing for aktiengesellschaft, or joint stock company, publicly traded.
It seems almost as common as Inc. and Corp. in the U.S. and Ltd. elsewhere.

GmbH which is seen alot nowadays, would be the German equivalent of LLC.

Siemens AG is a very old company for which the German John Rabe worked. He's still a hero in China today. I suppose Volkswagen-China owes a lot of thanks to him for his early friendship with the Chinese people.
 

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Re: BYD, Daimler to Form Electric-Car Venture

Daimler's tie-up with BAIC never grew beyond building Daimler's own models. Daimler's tie-up with Fujian Auto hasn't grown beyond building a few Daimler van models.
Now let's see where this Daimler-BYD venture will go...
A look at the quality of some BYD models makes it clear that they need the coachbuilding skills. By the same token BYD has a lot to offer Daimler in the battery department.
But can Daimler convince BYD to stop and think again about its planned foray into the American market as early as this year?
 

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Re: BYD, Daimler to Form Electric-Car Venture

dragin-who knows if BYD is really ready to introduce here in da States. You'd have to wonder. I am pulling for BYD though to get the e6 here in good shape. My biggest concern is if they're telling us the truth about range(249 miles!!).:nono:
 

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Re: BYD, Daimler to Form Electric-Car Venture

I was at the BYD press conference in Geneva. From what I understood, the plan is to conceive an all new electric car for the chinese market. BYD would engineer the electric drivetrain, Mercedes would engineer the car around it, and they would build it together in China.

Since the chinese market is the biggest of the world, there is no plan at this time to sell that car anywhere else.
 

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Re: BYD, Daimler to Form Electric-Car Venture

Rally Red Lancer GTS said:
dragin-who knows if BYD is really ready to introduce here in da States. You'd have to wonder. I am pulling for BYD though to get the e6 here in good shape. My biggest concern is if they're telling us the truth about range(249 miles!!).:nono:
If we can agree that being ready would include a recognized good track record of the model in China, then I think BYD is not ready Red Rally.

As for that lofty "range" figure, well at the Detroit show in January, it had been revised downward to 205 miles. And since there are no standards yet for these EV specs we do not know what driving conditions will produce this range.

It's interesting to note that the e6 model weighs in excess of 5,000 lbs.

If you are interested Red Rally it might be a good idea to wait for the one that Daimler is willing to put their stamp of approval on.

Green Car Driver, thanks for that first hand info about BYD's press conference.
 

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Re: BYD, Daimler to Form Electric-Car Venture

As a new car manufacturer, BYD has a lot to learn, and that's only normal, but I guess they can compete on price. I've been told the E6 has more than 800 kgs of batteries. That battery pack alone is worth a fortune if it were to come from an european manufacturer...

If BYD can produce batteries cheaper than anyone else, they will get big.
 

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Re: BYD, Daimler to Form Electric-Car Venture

That's what BYD does is make cell phone batteries. They're going to make their own car batteries as well. Their mission, should they choose to accept it, is to make car batteries that are mass-produced to get the cost down, while still remaining quality-built and reliable.

That's just it, who will be the daring ones to gamble on this e6 at first? Don't think I will just yet.
 

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Re: BYD, Daimler to Form Electric-Car Venture

That's the risk, that the first customers would be some sort of beta-testers. The chinese government might take that role. I believe that's the case with the hybrid F3DM.
 

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Re: BYD, Daimler to Form Electric-Car Venture

green car driver-good idea for the Chinese government to take that role. It would(should)mean a lot to the rest of the Chinese automakers if they would. Great idea, man.
 

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BYD, Daimler sign JV contract today for electric car

May 27, 2010
China's leading battery and electric-car maker BYD Co., Ltd. and German automaker Daimler AG signed a contract today to form a 50:50 joint venture that will develop a new green-car brand for the Chinese market, media reported.

Daimler Chairman Dieter Zetsche and BYD Chairman Wang Chuanfu signed the contract in Beijing today, finalizing a deal to develop an all-electric vehicle for China. The two companies believe that China will become one of the world's largest markets for all-electric, "zero-emission" vehicles.

The new research and technology center -- Shenzhen BYD Daimler New Technology Co. -- will be based in southern Chinese boom town of Shenzhen, where BYD is headquartered. BYD and Damler are expected to invest 600 million yuan ($87.9 mln) in the new R&D company.

"Our new joint venture is well positioned to make the most of the vast potential of electric mobility in China," Mr. Zetsche said, adding that the joint venture with BYD adds another dimension to Daimler's growing presence in this important market.

The car to be developed by the JV is likely to be based on the pure-electric propulsion system used in BYD's e6 all-electric battery car and will be beefed up by Daimler's auto safety and other technologies.

According to a Daimler executive, Daimler and BYD might display a prototype of the jointly developed all-electric car as early as the Paris auto show in October.

http://autonews.gasgoo.com/auto-new...-sign-JV-contract-today-for-electric-car.html
 

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Re: BYD, Daimler to Form Electric-Car Venture

Better for BYD than Mercedes in my opinion.

I'm very surprised about the quote that a concept could be shown at the Paris motorshow. From what I understood, they will only make cars for the chinese market, so it makes no sense to show the car in Europe.
 

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Re: BYD, Daimler to Form Electric-Car Venture

BYD to storm into JV market

From China Car Times:
BYD have run amok in the Chinese car industry in the past two years, seemingly coming from nowhere with their purchase of a bankrupt state owned car maker into one of the power houses of the Chinese car industry that has made Chery’s and Geely’s growth look rather meager in comparison.

BYD saw sales of over 400,000 vehicles in 2009, and is aiming to double that for 2010 with 800,000 vehicle sales and now they are attempting to enter the premium segment, which BYD has identified as being vehicles that are priced 100,000rmb ($14,646USD) and up.

According to a recent interview with BYD’s deputy general manager, Mr. Wang Jian Jun, 2010 is set to be BYD’s year for brand building year, where BYD will aim to build a global brand and will be producing some high end vehicles in which to accompany it.

Mr. Wang commented that cars priced 100,000rmb and rising are mostly cars developed by joint venture companies, but due to joint venture companies continually offering lower priced models, it is time for BYD to march into their pricing territory.

Until now, BYD’s cars have been priced from 30,000rmb to 100,000rmb, which has covered their base from mini cars to large sedans, by entering into the 100,000rmb and up price segment BYD can reach their sales goal of 800,000 cars.

BYD’s second factory in Xi’an city will be online in 2012, which will expand their production in Xi’an to 300,000 to 400,000 vehicles which will give them greater production capacity, and will no doubt serve as a production facility for them to continue into the 100,000rmb and up segment.

BYD have also set up different sales networks which target rural, sub-urban and urban with different models which makes sure that BYD models are suited to each market, and means that BYD dealers are never left with models that they cannot sell in specific markets.

The BYD F3DM plug in electric hybrid has gone on sale in Shenzhen to private buyers, and the pure electric E6 MPV is already under going road testing as a taxi in Shenzhen city, although the F3DM only sold 14 units it has already sold more than expected.

Mr. Wang believes that pricing is no longer an issue for electric car sales, especially as the government is offering subsidies of upto 50,000rmb on pure electric cars and hybrid cars to consumers, Mr. Wang believes that the biggest hurdle is now the lack of charging equipment which is putting consumers off buying something that could essentially become a large paperweight.
 
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