Beijing Benz Second Localization

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The 2010 performance list is of great significance to the Beijing Mercedes-Benz. This company with the title of "the world's most powerful car partner", but even lost 4 years of joint venture car companies, in the 2010 financial statements, finally breathed a sigh of relief.

According to data from Beijing's Mercedes-Benz, in 2010, Beijing Benz relied on its own business development for the first time to realize a truly profitable turnaround, and “profit figures were at 10 figures”. As the most devastating joint venture in China, Beijing Benz defined 2010 as the most significant turning point in the five years since the joint venture was established.

At the same time, the lock-up of the 300,000 Beijing Benz 5-year plan was also accompanied by the high-profile Chinese investment plan of the German Mercedes-Benz. In 2011, Mercedes-Benz's localization in China and Beijing's Mercedes-Benz's integration into Mercedes-Benz's global system will strike in double lines. This is also considered to be the beginning of the second phase of the development of Beijing Mercedes-Benz and the deepening of localization.

Executive VP of Beijing Benz is very proud of this. According to his introduction, in 2008, due to the separation of the Chrysler brand business from Beijing Benz, Daimler proposed a nearly 6.7 billion business termination compensation plan. The plan lasts for three years, starting in 2008 and ending in 2010. However, in 2010, Beijing Benz relied on excess sales revenue to realize that Daimler cash support was no longer needed and the compensation was reduced to 3.872 billion yuan, a reduction rate of 38%. It really developed from relying on “blood transfusion” to develop its own “hematopoiesis”. ".

For Beijing Benz, compared with the sales volume, the more profound turning point is the win-win awareness and intimacy of the joint venture's relationship was strengthened in 2010. "It is gratifying to note that on a recent board meeting held by Beijing Benz, both Chinese and German shareholders expressed confidence in the future development of the joint venture and proposed that they would give greater support."

On January 18th, BASF Logistics Co., Ltd., a professional logistics company subordinated to Beijing Automotive Group Corporation (hereinafter referred to as Zhongdu Logistics), and Germany Meisi Co., Ltd., a logistics service provider of Daimler, Germany, formally signed the agreement.

This seemingly ordinary deal is the beginning of Beijing Benz’s 2011 industrial layout. Zhongdu Logistics officially became the logistics supplier of Beijing Benz at the end of last year, and German Maxspeed was one of the logistics service providers of Benz. The two companies reached an agreement with the cooperation of Beijing Benz.

According to the second "5-year plan" of Beijing Benz, by 2015, it will form an annual production capacity of 300,000 units of vehicles, 500,000 engines, and 6 series of models.

"This is not only a key step for Mercedes-Benz to strengthen its localization chain in China, but also a sign of Beijing Benz's accelerated integration into Mercedes-Benz's global system." Insiders pointed out that the accelerating localization competition of joint-venture car companies will culminate in 2011. Beijing Benz will become the representative of this competitive camp.

After the local decision-making power was upgraded, Beijing Benz launched drastic improvements in marketing and channels. A significant change is that Mercedes-Benz has always insisted on high-end marketing strategy loosened in 2010, especially the domestic Mercedes-Benz C-class cars, decisively joined the luxury car to lower the price threshold.

Beijing Mercedes-Benz understands this as "the brand image of Mercedes-Benz is changing more in line with the changes in Chinese culture." According to information from Mercedes-Benz China, this change will continue to accelerate this year.

The same is true at the channel level. As of the end of 2010, Beijing Benz authorized dealers nationwide to reach 171 outlets, and 46 new outlets in 2010. Like competitors, in 2011, second- and third-tier cities will become the main targets for Beijing Benz.

Another level of localization competition will come from investment and production capacity.

The company said that the Beijing Benz Chinese and foreign shareholders have reached an agreement that Daimler will invest 200 million euros in China to build an engine plant with an annual output of 500,000 units. The project is planned to be put into use in 2012. This is the first time that Mercedes-Benz is outside Europe. Production engine. At the same time, Mercedes-Benz will also establish a new product R&D center in China.

In product planning, Beijing Benz’s efforts in 2011 have also increased significantly. In December 2011, the Mercedes-Benz GLK, a high-end compact SUV, will also be put into mass production in Beijing by Mercedes-Benz.

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