Mercedes-Benz shares in Beiqi new engine plant put into operation


On November 18th, Daimler AG officially started production of the new engine factory of Beijing Benz Motors Co., Ltd., the first overseas engine manufacturing plant established in the world. The start-up of the new engine plant means that Beijing Benz will transition from pure vehicle production in the past to the production of core components and then to mastering the core manufacturing process technology, realizing the essential transformation of the company. This transformation will undoubtedly have very important significance for Beijing Benz, Beijing Automotive Group, Beijing Automotive Industry, and even the entire Chinese automobile industry.

On the second day after the new plant was put into production, the cooperation between Daimler AG and BAIC Group once again made significant progress. The transaction of the acquisition of 12% equity of Beijing Automotive Co., Ltd. (Beijing Automotive) by Daimler AG was officially concluded. As a result, Daimler became the first foreign-invested automobile company to take shares in a Chinese automaker. According to the strategic cooperation agreement reached between the two parties, BAIC's joint-venture vehicle company, Beijing Benz Motors Co., Ltd. (Beijing Benz) will increase its share ratio from 50% to 51%; at the same time, Daimler's joint venture sales company in the two sides - - The share ratio of Beijing-based Mercedes-Benz Sales & Service Co., Ltd. will increase from 50% to 51%. Through this investment, Daimler also provided strong support for Beiqi’s future listing plan.

According to the plan, the first phase of Beijing Benz new engine plant will have a production capacity of 250,000 units, mainly producing twin-turbo gasoline engines and hybrid engines; the main engine types will be the four-cylinder M274 series, M270 series and six-cylinder M276 series; the focus will be on Beijing Benz. The C-Class sedan, the long-wheelbase E-Class sedan, the GLK-Class off-road vehicle, and the Fujian Mercedes-Benz commercial vehicle will be available, as well as other overseas markets.

On the product level, the new Mercedes-Benz engine plant in Beijing can independently use the Mercedes-Benz cutting-edge production technology, the most stringent inspection system, the most international technology and management backbone, and can independently carry out four-cylinder engine block, cylinder head and Crankshaft machining and assembly and testing of four- and six-cylinder complete engines. Its engines will be powered by twin turbochargers, stratified direct-injection combustion in cylinders, variable intake lift, adjustable oil pumps, smart start-stops, and other advanced technologies to achieve high power, low fuel consumption, and low power consumption. Emissions are uniform and can achieve exactly the same level as German domestic engines.

From the point of view of manufacturing process, “green manufacturing” is a major highlight of the new engine plant of Beijing Benz. Its many applications for environmental protection technologies and facilities are at the forefront of the industry, including the first application in the domestic machinery processing industry. The "heat recovery box" equipment for the machined exhaust gas purification system not only realizes the filtration and recovery of the oil mist and other exhaust gases during the process of processing, but also converts the exhaust gas into a waste heat through a heat exchanger. The thermal energy preheats the indoor air supply in winter and receives the dual effects of energy saving and emission reduction. The closed emulsion centralized liquid supply infrastructure can not only reduce the volatilization of the emulsion, but also realize the emulsion regeneration cycle at the same time. The service life is extended by 2 to 3 years and the emulsion discharge is fundamentally reduced. In addition, a two-stage sewage treatment facility with a daily processing capacity of 700 tons realizes water reuse for the circulatory system or domestic water.

At present, Beijing Benz mainly produces Mercedes-Benz E-Class sedans, C-Class sedans, and GLK City SUVs in China. Soon, the GLA model will become the fourth domestic model of Beijing Benz.

It is understood that Mercedes-Benz has introduced all its product lines to the Chinese market; in 2012, it sold nearly 210,000 units in China; in 2013, it will add 75 dealers to a total of more than 300. In addition, China has become a globally important market for Mercedes-Benz trucks. Apart from currently occupying more than 50% of China's imported high-end heavy truck market, it is cooperating with Beiqi Foton to jointly develop China's truck mass market. In the commercial vehicle market, Mercedes-Benz light commercial vehicles are produced for the Chinese market through Fujian Benz Automotive Industry Co., Ltd., another joint venture in China. In addition, Daimler Group and BYD Co., Ltd. jointly established Shenzhen BYD Daimler New Technology Co., Ltd., which is tailor-made for the Chinese market with a brand new “Tengshi” brand pure electric vehicle.



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