Daimler, BYD form battery powered car JV

BEIJING - Daimler AG, the world's second-largest manufacturer of luxury cars, and BYD Co, the Chinese automaker backed by billionaire Warren Buffett, have set up a 50-50 joint venture to develop electric cars in China.

"Our new joint venture is well positioned to make the most of the vast potential of electric mobility in China," Daimler Chief Executive Officer Dieter Zetsche said in an e-mailed statement on Thursday. Daimler and BYD plan to invest 600 million yuan ($88 million) in the venture.

Daimler is entering electric-vehicle production as part of a challenge to Bayerische Motoren Werke AG (BMW) for leadership in the luxury segment. BMW will introduce an electric-powered city car by 2013 and is working with partner Brilliance China Automotive Holdings Ltd on battery-powered models for the country, which became the world's biggest auto market last year.