Beijing Benz

The history of this company goes back to Beijing Jeep Corporation (BJC), which was the first Sino-foreign automobile joint venture in China. It became a prototype for future cooperative projects and BJC became a test case revealing problems, both political and economic, that would appear for other investors the Chinese hoped to attract.

The current name, Beijing Benz, was established in 2005, and the enterprise is now owned by Beiqi and Mercedes-Benz Group (formerly Daimler AG).

American Motors

Beijing Benz grew out of what was originally the Beijing Jeep Corporation (Chinese: 北京吉普汽车有限公司), China's first Sino-western automotive joint venture having been established in 1984 with American Motors Corporation.

American Motors began negotiations in 1979 to sell its vehicles in China and gain access to then low-cost Chinese labor. The Chinese wanted more-modern automotive technology; Beijing Jeep suited the needs of both parties and produced the American Motors Jeep Cherokee (XJ) in Beijing. While talks began in the late 1970s, operation started in 1985. The initial investment by AMC was $8 million. Assembly of the Cherokee continued after Chrysler purchased American Motors as did production of the classic Beijing BJ212-based SUVs.

Beijing Jeep has since become well known as an example of early foreign direct investment in China. Its pitfalls and successes are pored over in case studies, and such academic reports sometimes compare the marketing strategy of Beijing Jeep with that of Shanghai Volkswagen, another early Sino-foreign joint venture.

Chrysler

When Chrysler purchased American Motors in 1987, its Jeep brand came with an unexpected boon, Beijing Jeep. A few Chrysler models were subsequently added to the Chinese company's product line including the Jeep Grand Cherokee, Mitsubishi Pajero Sport, and the Mitsubishi Outlander, as well as some Beijing Jeep-branded, locally developed vehicles. Chrysler no longer had any ownership in Beijing Jeep as of early 2009 due to the failure of its attempt to acquire the maker of Mercedes-Benz models. That German company, Daimler, kept the profitable China manufacturing operation for itself once it was clear the merger was a failed prospect. Domestic manufacture of Jeep-branded vehicles ceased in 2006. Newer Jeep models are now being produced at a joint venture between Guangzhou Automobile Group and Fiat Chrysler Automobiles, current owner of the Chrysler and Jeep brands, however.

Daimler AG

During Chrysler's short-lived partnership with Daimler AG, maker of Mercedes-Benz cars, production at Beijing Jeep was expanded to include Mercedes-Benz-branded products. Its legal name was changed to Beijing Benz-DaimlerChrysler Automotive Co Ltd, with then German Chancellor Gerhard Schröder in attendance at the 2004 naming ceremony. While Chrysler was removed from the company in 2009, it remained in its legal name for several more years.

Mercedes-Benz had first entered Chinese production through a short-lived venture with FAW (First Automobile Works), which assembled 828 Mercedes-Benz W123 200 and 230E sedans in Changchun beginning in 1988, most of them from CKD kits. The cars did not prove popular. A few dozen of the long-wheelbase 230E Lang (V123) were among the cars assembled.

Beijing Benz has a production base at the Beijing Economic & Technological Development Area. Another plant opened in 2010. This opening may have increased potential Beijing Benz production capacity to 300,000 units/year. Such unit counts may consider engines and automobiles as discrete. An engine-making production base was scheduled to become operational in 2013.

Beijing Benz does not produce all the Mercedes-branded autos sold on the Chinese market. Some Mercedes offerings, the S-Class for example, are imported by Mercedes-Benz (China) Ltd.

As of 2009, Beijing Benz products, alongside those of several other makes, are purchased for use by Chinese State officials such as ministers and provincial heads.

Sales in 2010 were expected to reach 50,000 cars, but total Mercedes-Benz sales in China including imports were near 150,000. In 2008, Beijing Benz's production capacity was estimated at 100,000 units/year although that figure may consider engines and vehicles as discrete, and the company was likely able to produce only half that number of whole vehicles.