Daimler wants to conquer China

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The German company Daimller AG announced plans to build in China the largest factory in the world. The manufacturer of Mercedes hopes to conquer the rapidly growing automotive market in “the Middle Kingdom.”

The new facility, which will cost about 2 billion euros, will be created by the end of 2014. It’s construction will help Daimler double production in China to the level of 200 thousand. cars a year. By the end of 2015, the company intends to sell about 300 thousand cars per year, of which the lion’s share will be produced on site. This will reduce transportation costs and avoid high import tariffs.

Construction of the new plant is one of the “2020 Initiative,” which in addition to increasing the production capacity expansion involves the sales network and the introduction of 20 new models. If the sales target is reached, then China will become the primary market of Daimler. Currently, the company sells more cars in Germany and the USA.

Strengthening its position in the Chinese automotive market is a strategic objective of the manufacturer Mercedes. A year ago, the company was far behind the main rivals – BMW and Volkswagen. In 2012, Chinese consumers bought 206 thousand Mercedes (+ 4 percent year on year), 407 thousand Audi (+32 per cent year on year) and 313 thousand BMW (+41 percent year on year).

“The quality of vehicles and engines produced in China are the same as those produced in Germany,” said Hubertus Care, the new head of the Chinese branch of Daimler’s media team, which showed the plans for the conquest of the local market.

The German company is not deterred from investing in China, even given the falling rate of economic growth.

“In China, there is still much room for development. We are confident that in the next years the market will grow significantly. We see it this year, and we are confident that it will continue in the future,” Mr Care added.Source: Bankier – Daimler chce podbić Chiny. “Niemiecka precyzja Made in China”

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