Establishment of ‘Daimler Trucks and Buses China Ltd.’ strengthens Daimler’s commercial vehicle business in China

Establishment of ‘Daimler Trucks and Buses China Ltd.’ strengthens Daimler’s commercial vehicle business in China
April 2013
  • Legally independent entity for trucks and buses in China
  • Even stronger focus on specific needs of commercial vehicle market
  • Exploring new business opportunities for Daimler Buses
  • Hubertus Troska: “We continue the structural realignment of our business in China with ‘Daimler Trucks and Buses China.’”
Daimler AG further enhances its clout on the important Chinese market. With the foundation of ‘Daimler Trucks and Buses China Ltd.’ (DTBC), the company establishes a legally independent entity for its truck and bus business in China. The entity has already obtained its business license from the Chinese authorities. In his function as President and CEO of DTBC, Robert Veit, hitherto Executive Vice President Daimler Trucks China, will directly report to Hubertus Troska, responsible for China on the Daimler Board of Management. The structural independence will enable DTBC to increase its focus on the specific needs of customers of commercial vehicles. At the same time, integrating the bus business will create room for exploring new business opportunities.
“We continue the structural realignment of our business in China with our newly established entity ‘Daimler Trucks and Buses’”, says Hubertus Troska. “The new commercial vehicle entity is another milestone for Daimler in China and highlights our long-term commitment to the world’s largest vehicle market, which promises to offer enormous potential in the future as well.”
“DTBC will provide a solid framework for future expansion of the existing truck business and continuously broaden our range of products, for instance in the bus segment”, explains Robert Veit, President and CEO of DTBC. “With a challenging truck market in China, the establishment of the company is very timely as DTBC will enhance more strategic planning, higher efficiencies, closer collaboration with partners, and faster response to customers.”
The new organization is based on the existing achievments and success of Daimler Trucks in China, with sales of more than 6,100 in 2012. For the sixth year in a row, Mercedes-Benz holds the market lead in the premium segment for imported trucks among European competitors. Strengthening this position in a sustainable way, DTBC will enlarge additional offers such as financing, fleet management as well as FleetBoard telematics solutions, thus supporting customers in the management of their total cost of ownership.
At the same time, Daimler strengthens its presence as the world’s leading global bus manufacturer with the establishment of DTBC. The entity will facilitate exploring and exploiting new business opportunities in the market.
Overview: Daimler in China
Daimler in China is based in Beijing and includes Daimler Greater China Ltd., Mercedes-Benz (China) Ltd., Mercedes-Benz Auto Finance Ltd., Daimler Northeast Asia Parts Trading & Services Co., Ltd., the joint ventures Beijing Benz Automotive Co., Ltd. (BBAC), Beijing Mercedes-Benz Sales Service Co. (BMBS), Beijing Foton Daimler Automotive Co., Ltd. (BFDA), Fujian Benz Automotive Corporation (FBAC) and Shenzhen BYD Daimler New Technology Co. Ltd., as well as sales companies in Hong Kong and Taiwan.
To address the importance of the market, Daimler established an additional Board of Management Position for the Greater China Region in December 2012. It is held by Hubertus Troska.
Local production of Mercedes-Benz cars began with the predecessor series of the E-Class in the joint venture BBAC in 2006; the second C-Class series followed in 2008. BBAC has been producing the current E-Class in a long-wheelbase version tailored specifically for the demands of the Chinese market since May 2010; the first locally produced GLK rolled off the production line in Beijing in December 2011.
On the sales side, BMBS is a joint venture between Daimler and its strategic partner BAIC, which combines the functions of sales & marketing, after sales, expansion of dealer network, used-car and fleet-car sales, as well as dealer and workshop training for Mercedes-Benz cars in China, in a single integrated organization. Mercedes-Benz Cars is represented in China with its complete product portfolio; around 210,000 vehicles were sold in the year 2012. At least 50 new dealers will be added to the sales network of already over 220 every year, making the brand increasingly present outside the Tier 1 cities.
China is already the fifth-largest sales market for Mercedes-Benz trucks. With a market share of more than 50% in the premium segment, Mercedes-Benz Trucks lead the market above all in the heavy-duty segment. In addition, Daimler is developing the volume segment of the world’s biggest market for commercial vehicles in a joint venture with Foton Motor, a Chinese truck manufacturer. Since mid-2012, the jointly produced medium and heavy trucks of the Auman brand have also been rolling off the production line in Beijing-Huairou.
In addition, Daimler has been producing Mercedes-Benz vans for the Chinese market in the Fujian Benz Automotive Corporation joint venture since April 2010.
Daimler Financial Services has been active in China since 2006 and offers automotive financing through Mercedes-Benz Auto Finance China. In mid-2012 the portfolio has been extend by new leasing solutions.
And together with BYD, Daimler has initiated the joint venture Shenzhen BYD Daimler New Technology Co. Ltd to develop an electric vehicle for the Chinese market. This joint venture was officially approved in March 2011.