Daimler’s van making JV changes its name to Fujian Benz
March 22, 2012 Category Automotive, Automotive Metals & Minerals
Daimler’s joint venture making Mercedes-Benz vans changed its name to Fujian Benz Automotive Co to improve brand recognition among Chinese consumers. “What we found in China is that the name Daimler is not as well known as Benz,” said Rene Reif, President and CEO of the company formerly called Fujian Daimler Automotive Co. Established in 2007, the three-way joint venture between Daimler, Fujian Motors Group and China Motors Corp from Taiwan began building Mercedes-Benz Viano and Vito vans in China in 2010. Production of a larger van, the Sprinter, began in late 2011. The plant has the capacity to make 40,000 vehicles annually. The company sold about 13,000 vans last year ― including a handful of imported models ― an increase of more than 40% over the sales of about 9,000 vehicles in 2010, the year it started local production. China is already one of the top five markets for Mercedes-Benz vans worldwide. The nation even surpassed Germany to be the No 1 single market for the Viano in 2010, though it fell to second place last year. Reif said the MPV segment in China grew by 12% in 2011 and will maintain double-digit growth this year. The majority of Mercedes-Benz van buyers in China are government or business customers, although more and more private buyers are also interested in the Viano. This year, Fujian Benz will add 10 to 15 dealer outlets in China to an existing network of 54 dealerships, Reif said. The joint venture currently has two R&D facilities under construction at a cost of CNY500
million in the outskirts of Fuzhou that will be completed in the fall.
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