Of the 14 billion yuan, 10 billion yuan will be invested in passenger car business and 4 billion yuan will be invested in light commercial vehicle business. According to the announcement, these two investments will be completed together with Mercedes Benz's joint venture partners in China, BAIC Group and Fujian Automobile Group.
According to the plan, this 14 billion yuan investment will be used to promote the production of Mercedes Benz's two new platforms and multiple exclusive Chinese models. Starting from 2025, Mercedes Benz will gradually produce new pure electric long wheelbase CLA models, long wheelbase GLE SUV models, and VAN based models exclusively for China A brand new luxury pure electric MPV on the EA platform. Among them, the new long wheelbase GLE SUV model will be developed by a Chinese team for the first time, providing China's exclusive intelligent technology.
The all-new pure electric long wheelbase CLA model is produced by Beijing Benz, a joint venture between Mercedes Benz and BAIC. The vehicle is based on the all-new Mercedes Benz modular architecture (MMA) platform and is specifically tailored for Chinese customers. The latest technology of the new MMA platform models can be seen from the Mercedes Benz CLA class concept car exhibited last year. The CLA class concept car adopts an efficient 800 volt electrical architecture and a class leading two speed gearbox, with a comprehensive energy conversion rate of 93% from the battery to the wheels. It can achieve a range of 400 kilometers after 15 minutes of charging and has an energy efficiency performance of 12 kWh/100km.
Another focus of this investment is the local research and production of the new long wheelbase GLE SUV model exclusive to China. As a popular model of Mercedes Benz in China, GLE has been sold domestically through imports. The long wheelbase version launched this time is tailored for China, which also means that GLE will officially launch its domestic production plan. It is reported that the new long wheelbase GLE SUV model will be developed and put into production in China, with the main selling points being China's exclusive rear seat comfort and leading intelligent technology.
The domestic production of the long wheelbase GLE SUV will further enrich the lineup of Mercedes Benz domestic models. From the first Chinese exclusive long wheelbase model launched in 2010- the Mercedes Benz long wheelbase E-Class, to the first domestically produced SUV model GLK in 2011, and to the electric models gradually produced by Mercedes Benz in Beijing after 2019, Mercedes Benz currently has 11 locally produced models in China, including 6 SUV models.
The investment announced this time will partially support Fujian Benz Automotive Co., Ltd. (Fujian Benz) in producing VAN based vehicles A brand new luxury pure electric MPV on the EA platform. According to Mercedes Benz, in the future, all new medium and large models of Mercedes Benz light commercial vehicles will be based on modular and scalable VAN EA electrification platform. At present, Mercedes Benz's main light commercial vehicle models in China are the V-class MPV and Vito.
Fujian Benz was founded in June 2007 and is the only light commercial vehicle production base of Mercedes Benz Group in the Asia Pacific region. It was established with 50% investment from FAW Group and 50% investment from Daimler AG Hong Kong Limited. In 2016, BAIC Group announced the acquisition of 35% equity of Fujian Benz from FAW Group, becoming the second largest shareholder of Fujian Benz. Since 2017, Fujian Benz has consistently ranked first in industrial enterprise taxation in Fuzhou. In June of this year, the second phase project of Fujian Benz was successfully laid, providing VAN EA platform models are preparing to land in Fuzhou.
The technical information released by Mercedes Benz this time also includes the brand new architecture MB independently developed by Mercedes Benz The OS will debut with a new MMA platform model in 2025, offering a brand new MBUX virtual assistant powered by 3D graphics technology and big language models, as well as the luxury brand's first "no graphics" end-to-end full scene intelligent driving system. End to end is the latest technological concept in the field of intelligent driving, which means that in terms of digitization and intelligence, Mercedes Benz is laying out according to the Chinese speed and technology track.
Mercedes Benz stated that the strategic layout of Mercedes Benz Group's transformation, advanced technological innovation, and the latest heavyweight products will continue to land in China at a "Chinese speed". Through these investments in China, Mercedes Benz will further participate in the development of high-end manufacturing, new energy vehicles, intelligent connected vehicles, and related industrial chains in Beijing, Fuzhou, and surrounding areas.
Recently, Ola K ä llenius, Chairman of the Board of Directors of Mercedes Benz AG, visited China for the fourth time in mid-2024. He said, "The Chinese market is one of the important pillars of Mercedes Benz Group's global strategy, and it is also an important driving force for our electrification transformation and technological innovation. Mercedes Benz has been committed to long-term investment in China, deeply participating in and assisting the upgrading of China's automotive industry
According to official statistics from Mercedes Benz, from 2014 to 2023, Mercedes Benz and its partners invested over 100 billion yuan in China, with a total investment of 10.5 billion yuan in research and development over the past five years. At present, the Mercedes Benz China R&D team has become the most comprehensive R&D network for Mercedes Benz outside of Germany, with over 2000 R&D experts. Mercedes Benz's research and development achievements in China have also begun to be transmitted in reverse to Mercedes Benz headquarters. In April of this year, the new building of Mercedes Benz Shanghai R&D Center was opened, and Mercedes Benz China announced that its R&D has officially entered a new stage of "leading the global trend with Chinese innovation".
Not only Mercedes Benz is deepening its investment and localized production in China, but also BMW and Audi, both German luxury car brands, have increased their investments in China for their transformed new businesses. After investing 10 billion yuan in a high-voltage power battery factory last year, BMW announced in April this year that it will increase its investment of 20 billion yuan in its Shenyang production base to prepare for the localization production of BMW's new generation models in China by 2026.
At the beginning of this year, Audi's first pure electric vehicle production base in China, Audi FAW New Energy Automobile Co., Ltd., started pre mass production. The project has an investment of over 35 billion yuan and will gradually produce models based on the Audi PPE pure electric platform from the end of this year. Among them, the first model Q6 e-tron has become the focus of industry attention.
Mercedes Benz's investment this time is a typical example of German car companies holding the opposite attitude to EU officials in trade with China. In the new competition of electrification and intelligence, "how to maintain the advantage in China" has become the most important issue for all German car companies. Increasing local investment and research and development depth, actively participating in the development of China's new automotive industry chain, is the unified action of current German car companies.