Beijing Benz

Beijing Benz Automotive Co., Ltd. is an automotive manufacturing company headquartered in Beijing, China, and a joint venture between BAIC Motor and Mercedes-Benz Group.[2][3]

It was initially established in January 1984 as a joint venture with BAIC Motor of Beijing, China, and American Motors Corporation (AMC) of Michigan, USA; therefore named Beijing Jeep Corporation .[4] It was the first Chinese auto-making joint venture with a Western partner.[5] The joint venture was unaffected by Chrysler's acquisition of AMC in 1987, Chrysler's merger with German automaker Daimler-Benz AG in 1998, and continued after DaimlerChrysler Corporation sold its Chrysler division to Cerberus in 2007.

History

American Motors

Beijing Benz grew out of what was originally the Beijing Jeep Corporation, China's first Sino-western automotive joint venture having been established in 1984 with American Motors Corporation.[8]

American Motors began negotiations in 1979 to sell its vehicles in China and gain access to then low-cost Chinese labor.[10] The Chinese wanted more-modern automotive technology; Beijing Jeep suited the needs of both parties and produced the American Motors Jeep Cherokee (XJ) in Beijing.[10] While talks began in the late 1970s, operation started in 1985.[11] The initial investment by AMC was $8 million.[12] Assembly of the Cherokee continued after Chrysler purchased American Motors as did production of the classic Beijing BJ212-based SUVs.[10]

Beijing Jeep has since become well known as an example of early foreign direct investment in China.[13] Its pitfalls and successes are pored over in case studies, and such academic reports sometimes compare the marketing strategy of Beijing Jeep with that of Shanghai Volkswagen, another early Sino-foreign joint venture.[14]

Chrysler

When Chrysler purchased American Motors in 1987,[15] its Jeep brand came with an unexpected boon, Beijing Jeep. A few Chrysler models were subsequently added to the Chinese company's product line including the Jeep Grand Cherokee, Mitsubishi Pajero Sport, and the Mitsubishi Outlander, as well as some Beijing Jeep-branded, locally developed vehicles. Chrysler no longer had any ownership in Beijing Jeep as of early 2009 due to the failure of its attempt to acquire the maker of Mercedes-Benz models. That German company, Daimler, kept the profitable China manufacturing operation for itself once it was clear the merger was a failed prospect.[16] Domestic manufacture of Jeep-branded vehicles ceased in 2006.[17] Newer Jeep models are now being produced at a joint venture between Guangzhou Automobile Group and Fiat Chrysler Automobiles, current owner of the Chrysler and Jeep brands, however.[18]

Daimler AG

During Chrysler's short-lived partnership with Daimler AG, maker of Mercedes-Benz cars, production at Beijing Jeep was expanded to include Mercedes-Benz-branded products. Its legal name was changed to Beijing Benz-DaimlerChrysler Automotive Co Ltd,[8] with then German Chancellor Gerhard Schroeder in attendance at the 2004 naming ceremony.[8] While Chrysler was removed from the company in 2009, it remained in its legal name[16] for several more years.

Mercedes-Benz was firstly involved in a short lived joint venture from 1987 until 1988 with FAW (First Automobile Works) where 828 vehicles were produced consisting of the Mercedes-Benz (W123) 200 and 230E Lang, most of which were made from CKD kits.[19] Incidentally, Daimler had previously cooperated with FAW Group

type	Joint venture
foundation	August 8, 2005‡R1R‡
location city	Beijing
location country	China
area served	China
key people	Arno van der Merwe (CEO)
industry	Automotive
products	Automobiles
owner	BAIC Motor (51%) Mercedes-Benz Group (38.665%) Mercedes-Benz China (10.335%)
num employees	20,000 total
homepage	bbac.com.cn

History

American Motors

Chrysler

Daimler AG

Operations

Models

Current production

Former production (Beijing Jeep)

Former production (Beijing Benz)

Mercedes-Benz production under First Automobile Works

See also

External links

References