BBAC Achieves Double-digit Growth in 11 Consecutive Months, Both Production and Sales Exceeds 200,000 in the First Half of 2017
Source:          Release Time:  2017-07-11 10:07:28

(Beijing, 11 July 2017) – The renewed collaboration between BAIC Motor and its German partner Daimler AG is the most noticeable among the various partnerships in the field of New Energy Vehicles (NEVs) started by major automobile enterprises so far this year. In the presence of Chinese President Xi Jinping and German Chancellor Dr. Angela Merkel last week, BAIC and Daimler AG signed a new framework agreement to jointly invest a total of five billion RMB in the production of Battery Electric Vehicles (BEVs) under the Mercedes-Benz brand at the local production hub of BBAC. BBAC power battery plant will comply with the most advanced production standard, facility and technology of Industry 4.0, and become an important part of global power battery production network of Mercedes-Benz. As the NEVs’ market is just unfolding, such a brand-new collaboration embodies the sharp spirit of Sino-German shareholders who tune their actions with market tides, pushing the “BAIC – Daimler AG partnership” a step further.

What exactly are the merits that enable BBAC, the leading player implementing this major strategic deployment, to have stepped onto the shoulder of an auto giant? The answer lies in the remarkable performance accomplished by BBAC recently, explaining why the shareholders of both sides are so confident in giving impetus to BBAC’s future development by contributing large amounts of funding. After leaping to the second position of wholesale volumes among joint ventures premium car JVs, BBAC has maintained its robust performance in 2017 – exceeding 200,000 units both in production and sales with more than 40% year-on-year growth, continuing to take the lead in growth of China’s first-tier premium car market. The momentum of 11 consecutive months of double-digit growth not only contributes over 70% of all Mercedes-Benz brand sales in China, but also drives BBAC closer and closer to the very throne of China’s premium car market.

In spite of a frequently turbulent in Chinese auto market in the first half of 2017, BBAC kept up its unstoppable pace. Entering 2017 with a good start in January, BBAC set a historically new high of 40,000 cars in monthly sales. This was followed by a milestone breakthrough in March when it, for the first time, manufactured over 40,000 engines within one month. Also in March, BBAC received an honor in Munich and become the only car manufacturer in China to be granted “Factory of the Year,” a top-level honor for global manufacturers. In the first season of 2017, monthly sales of the C-Class vehicles and GLC SUVs exceeded 10,000 units for three consecutive months, while in May the E-class cars crossed the 10,000-unit sales threshold for the first time since its updating, enabling BBAC to boost its business across the various market segments. Behind such a prosperous status, efforts are the foundation allowing the auto enterprise to stay fastened in its position amid the rough waters of the current market.

The achievements of BBAC in platform building and serialization in recent years are well known. It has not only built the most comprehensive Mercedes-Benz passenger vehicle production base worldwide with the largest land area and production volume, but also is Daimler’s only premium joint venture to produce Mercedes-Benz front-wheel drive architecture (MFA), Mercedes-Benz rear-wheel drive architecture (MRA), and Mercedes-Benz powertrain architecture (MPA) all under one roof. Based on this, BBAC introduced the four key Mercedes-Benz models: long and standard-wheelbase C-class vehicles and E-class vehicles, and GLA SUVs and GLC SUVs. With outstanding quality, pioneering manufacturing standards, advanced manufacturing technology and prominent product superiority, BBAC dominates four premium car mainstream market segments, bringing powerful support to its own flourish.

Meanwhile, BBAC has also been highly effective in internal lean management. Empowered by shareholders from both Sino-German sides, and thereof drawing lessons from a great sum of cutting-edge operational ideas and management experience, BBAC has built up a highly efficient value chain that amalgamates web-thinking, information-based management, processed working and digitalized operation, thus substantially raising its operational efficiency and laying the foundation for fast response to market demand.

The multi-dimensional progress and growth achieved by BBAC in production, sales, platform building and systematic development, has convinced the Sino-German shareholders of the strategic move in NEVs development to layout the transformation in advance. As a practical demonstration for “Germany Industry 4.0” and “Made in China 2025,” BBAC has already applied advanced manufacturing techniques, up-to-date logistics concepts, fleet introduction of standards, reliable scrutiny of standards and digitalization to every step of its production process. It has also gradually realized a manufacturing mode that is characterized by mobile sharing, interconnection, and high flexibility and adaptability, as well as built up a web-connected “eco-system” that perfectly brings together digitalized virtual factory and real-life factory. BBAC has thus established itself as a pioneer in putting “Germany Industry 4.0” into practice in China. Now that the battery electric vehicles initiative has been kicked off, BBAC will, being one step ahead of its competitors, respond proactively to the country’s industrial strategy of “Made in China 2025”, using its intelligent manufacturing practice, and open-up a brand-new future for the battery electric vehicles sector.

Naturally, these breakthroughs made by BBAC would be impossible without the close collaboration with Beijing Mercedes-Benz Sales Service Co., Ltd. (BMBS), its associate company. Since 2013, the two companies, based on the spirit of cooperation, have been successfully making unified efforts of integration of resources, interaction between production and sales, as well as shortening of lead time, resulting in more coordinated production and sales, enabling both to adapt to market changes in a timelier manner, hit the market more to the point and win more consumer preference. More to that, BMBS has quickly finished establishing its dealers’ network and built up relationships of mutual trust, providing the fundamental basis for the Mercedes-Benz brand to realize 52 consecutive months of growth and laying concrete foundation for the long-term development of BBAC.

Base on the current momentum, BBAC will continue to carry the corporate spirit of the best or nothing, stay innovative and deepen transformation. “Build Mercedes-Benz in China!” is its mission. “Star shines from BBAC” is its vision. In the future, BBAC will take the chance and accelerate toward the leading position of China’s premium car market on the Road to Excellence.