Chinese auto maker BYD (Build Your Dreams) and German giant Daimler have signed a preliminary agreement to mass produce an electric car together, executives said at the Geneva motor show on March 02.
Under the memorandum of understanding, the world's oldest automaker and one of the youngest aim to market the vehicle under a new jointly owned brand, merging their technological know-how for China's fast expanding urban market.
"Under the agreement Daimler and BYD intend to develop a new electric vehicle specially for the requirements of the Chinese market," said BYD general manager Henry Li in Geneva, calling it a milestone for the fledgling company. "This is a co-operation between the most senior automaker and the youngest... between the country with the best auto industry and the country with the biggest auto market," he told journalists.
Daimler chairman Dieter Zetsche said the company was taking a foothold in the electric vehicle sector in China, now the world's biggest and fast growing car market with about 16 million sales a year. "Daimler's know-how in electric vehicle architecture and BYD's excellence in battery technology and e-drive systems are a perfect match," Zetsche said in a statement.
In Geneva, Zetsche said he hoped for an agreement "pretty soon" and signalled that the two had an "ambitious schedule."
"It's certainly supposed to be an electric vehicle for the broader market," he added.
Launched just seven years ago, BYD Auto now claims to be the sixth biggest car maker in China and its future plans are focused on electric or hybrid vehicles, building on the experience of its battery making parent group.