Daimler shines as symbol of Sino-German cooperation

German Chancellor Angela Merkel touched down in Beijing on Thursday to promote the bilateral trade and industrial innovation between Germany and China, which has already witnessed Daimler's significant success in automobiles and mechanical engineering in past few decades.

The most remarkable example is Beijing Benz Automotive Co Ltd, a joint venture between Daimler and BAIC Automotive Group, which is emblematic of Daimler's domestic collaboration and strengthening presence within China.

"BBAC represents the firm confidence Daimler has in the Chinese market, because continuous investment in localization has and will always be essential for our business growth in this country," said Hubertus Troska, member of the board of management of Daimler AG responsible for Greater China.

Since its founding a decade ago, BBAC has become one of the largest Mercedes-Benz passenger car plants worldwide.

Another remarkable achievement by Daimler is the G-Code vehicle, inspired by the lifestyle and digital culture of contemporary China society, this vehicle is the first ever Mercedes-Benz concept car "created in and for China".

With the establishment of the Mercedes-Benz Research and Development Center last year, the company's local R&D efforts have taken off.

According to Troska, "as a key element for our sustainable growth strategy in China, our new R&D Center will help us to fully tap our potential here and give our Chinese customers' voice even more weight in our global network and future product development. "

Meanwhile, BBAC's new generation compact car plant, which officially began operation this April, bears a distinctive role as the only Mercedes-Benz joint venture capable of manufacturing front - and rear-wheel-drive vehicles and engines under one roof, and represents a key milestone within Daimler's global network.

Obviously, the German automaker would not play such a vital role without a substantial financial guarantee.

According to Troska, both partners have jointly invested 4 billion euros ($4.4 billion) into BBAC through 2015. The sustainable investments can be seen as a testament to the successful partnership.

Merkel last visited China in July, 2014, four months before President Xi Jinping paid a visit to Germany, and this trip is her eighth trip as German chancellor to China; among the current Western heads of state Merkel has arguably devoted the most time and attention to China.

Back in 2008, Merkel visited the Beijing Mercedes-Benz plant during the inauguration of the 25,000th vehicle manufactured there, and since then Mercedes-Benz further strengthened its domestic partnerships and delivered on its long-term commitment to China.

Their faith in the domestic market has paid off, and in the first nine months of this year, Mercedes-Benz has sold nearly 260,000 units in China, with their passenger vehicle sales increasing by 33 percent year-on-year within the same period.

In addition to its strong local partnerships, another factor has also contributed heavily to Mercedes-Benz's success in China: the rise of the SUV.

China has now become one of the most important SUV markets worldwide.

At the recent GLE SUV launch in the mountainous footholds of Chongqing, Nicholas Speeks, president& CEO of BMBS, pledged to "further strengthen the competitiveness of the Mercedes-Benz SUV family and author an impressive new chapter for the Year of the SUV."

The numbers reflect this commitment, as of this September SUVs accounted for 41 percent of the company's total sales, witnessing 37 percent year-on-year growth.

Of every five cars Mercedes-Benz sells in the China market, two are SUVs, and China is already the number one market for both the GLA and GLK SUVs.

"However, the measure of success is not only sales numbers, but also how well the company satisfies and serves customers," said Speeks.

"All of our efforts are aimed at showing Mercedes-Benz is a desirable brand, not only because of our first-class products, but more importantly because of the Mercedes-Benz family's sincerity and respect for all. Through this effort, we will meet customers' ever-increasing demand for performance while once again underscoring Mercedes-Benz's attention and commitment to the Chinese market."

Recently, Speeks gave a few teasing hints of the launch of the GLC. The GLC's launch this November will round off the year, with Mercedes-Benz launching one strong SUV model each quarter of the year. The company's current SUV sales growth is proof of their successful strategy.

Although 2015 has been marked as the Sino-German Year of Innovation, this initiative is not limited to a year, and will extend for the foreseeable future.

As Germany and China continue to nurture their longstanding relationship, companies such as Daimler will serve increasingly important roles, both as an innovative figureheads within a traditionally conservative industry, and as a physical manifestation of the success which can be achieved through a continually strengthening the Sino-German relationship.

Contact the writers at gongzhengzheng@chinadaily.com.cn and yangcheng@chinadaily.com.cn

(China Daily 10/30/2015 page6)