Mercedes-Benz Group AG reported yesterday (18.09.2024) that it withdraws from joint venture with BYD, which was created for the joint production and sale of luxury electrical cars. The German car maker made the final exit from the company by selling the remaining 10% of the shares he held after the divestment of most of his shares in 2021.
The company, which develops and manufactures luxury electrical vehicles under the brand name Denz, is now wholly owned by BYD. Mercedes representatives reported that the technologies belonging to the German company were not utilized in the Denz models presently being sold.
The Mercedes-Benz Group AG decision does not surprise. Shenzhen BYD fresh Energy's partners established in 2011 from the very beginning signalled problems in cooperation. In 2021, the company only sold around 5,000 vehicles under the Denz brand. In response, Mercedes reduced its shares in the company in the same year from 50% to 10%.
Under the control of BYD Denza in 2022 she sold around 10,000 cars, and in 2023... 128,000. BYD plans to further expand, including the markets in Europe and Australia, although the European Union's duties on Chinese electrical vehicles may be an obstacle.
Mercedes-Benz Group AG remains active in Chinese joint ventures with Zhejiang Geely Holding Group and BAIC Motor.
Source: Nikkei Asia
Leszek B. Glass
Email: [email protected]
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