The existing production facilities will be upgraded to accommodate assembly of electric vehicles.

With Daimler investing no less than €10 billion (about $11.2B) in the development of electric vehicles, it makes perfect sense Mercedes has reached an agreement with its Chinese partner BAIC to build EVs in the People’s Republic. In order to facilitate the assembly of zero-emissions models, investments will be made at their joint venture Beijing Benz Automotive Co., Ltd. (BBAC) to upgrade the factories and pave the way for the production start of these greener cars.

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As part of the understanding between Daimler and BAIC, the former will also purchase a minority stake in the latter’s Beijing Electric Vehicle Co., Ltd. (BJEV) subsidiary as a way to further strengthen their joint efforts to build EVs in China.

As you may recall, Mercedes is preparing a total of 10 EVs all due by the middle of the next decade as part of the newly founded EQ sub-brand. These will all be underpinned by a new flexible platform created specifically to cater electric cars. The company with the three-pointed star badge might have an issue using “EQ” in China where Chery has been selling an electric city car that goes by the name of “eQ” since late 2014. In fact, Chery has actually filed a trademark complaint against Mercedes.

Mercedes has already previewed its EV agenda with the Generation EQ crossover concept (pictured here) introduced at the Paris Motor Show last September. Rumor has it a second EQ-badged showcar will be unveiled in September this year in Frankfurt and it will take the shape of a city-oriented hatchback to rival the BMW i3.

Further down the line, AMG has already made the promise there are also going to be performance cars entirely electric, much like the SLS Electric Drive offered in limited quantities several years ago.

Source: Mercedes

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