Cars

BMW, Mercedes see extra legroom backing China growth

(Agencies)
Updated: 2010-04-24 15:26

BMW, Mercedes see extra legroom backing China growth

Chief Executive of German luxury carmaker BMW Norbert Reithofer gestures in front of a BMW Vislovl car at the Beijing Auto Show in Beijing April 23, 2010. China overtook the United States as the world's biggest auto market in terms of number of vehicles sold in 2009, helped by Beijing's incentives. [Agencies]

Brilliance China

BMW, with partner Brilliance China Automotive Holdings Ltd, is expanding its Shenyang factory and building a second facility for 560 million euros ($744 million). The Munich-based automaker, which began producing 3- and 5-Series models in China in 2003, will more than double capacity to 100,000 vehicles by 2012 from 41,000 in late 2009.

The company may add production of the X1 compact SUV in China when the second factory opens in 2012. "We are currently exploring this possibility together with the authorities here in China," Reithofer said.

The Munich-based manufacturer also plans to build a so-called New Energy Vehicle for China, together with Brilliance.

BMW's Rolls-Royce brand reported Friday that first-quarter sales in China more than tripled, helping boost global deliveries by 60 percent.

Daimler could use China as a springboard for growth in other markets, Weber said in the interview. The company may export an electric vehicle it's developing with BYD Co for China to other markets following its 2013 launch, he said.

Daimler's cooperation with BYD, the Shenzhen-based automaker backed by billionaire Warren Buffett, has "huge prospects," with sales of the battery-powered vehicles likely to exceed 10,000 units, development chief Weber said.

"If it turns out to be successful, then one has to see" about exports, Weber said. "We'd be ill-advised to rule this out."

Audi's parent, Volkswagen, which plans to start producing battery-powered cars in China as soon as 2013, sees the country as the cornerstone of its ambitions to be the global electric-car leader by 2018.

"China is the most important market worldwide for Volkswagen, and the success of e-mobility is decisive," Chief Executive Officer Martin Winterkorn said Friday in a statement.

Volkswagen presented the E-Lavida, the first electric vehicle developed in China, at the show. A battery-powered version of the Golf and the Lavida will be tested in China as preparation for a broader market launch. The E-Up! city car is due to go on sale in China in 2013, Volkswagen said Friday.

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