BYD and Daimler Sign Joint Venture Contract to Develop Electric Vehicles in China

BYD Company Ltd. and Daimler AG signed a contract creating a 50:50 research and technology joint venture called Shenzhen BYD Daimler New Technology Co. Ltd. that will develop an electric vehicle for China.

BYD and Daimler will invest RMB 600 million to use as registered capital for the Joint venture. The new generation of electric vehicles developed by the joint venture will capitalize on Daimler’s expertise in electric vehicle architecture and safety as well as BYD’s expertise in battery technology and e-drive systems. The vehicle will be marketed under a new brand jointly created and owned by Daimler and BYD.

Wang Chuanfu, Chairman and President of BYD Company Limited, commented, "Together with Daimler we are making excellent progress identifying opportunities to utilize the strengths of both companies to create a new brand of electric cars for China. This is a unique and exciting initiative and together we are pushing hard to bring this new electric vehicle to market as soon as possible."

Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG, commented, "Our new joint venture is well positioned to make the most of the vast potential of electric mobility in China. We are fortunate to have excellent joint venture partners in China and the establishment of this research and technology center with BYD adds another dimension to our growing presence in this important market."

This joint venture follows the signing of a Memorandum of Understanding (MOU) on March 1. Engineers, designers and other executives from both companies established working teams after the signing of the MOU to begin working on the vehicle concept. The business license for the new joint venture is subject to relevant government approval.