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Daimler has reached a crucial milestone in growth market China: The establishment of Beijing Mercedes-Benz Sales Service Co., Ltd. means that all sales activities for imported and locally produced Mercedes-Benz cars will now be combined under one roof. The new company is a 50:50 joint venture with Daimler’s strategic partner, Beijing Automotive Group (BAIC). “China is a key element of our Mercedes-Benz 2020 growth strategy,” stated Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars. “In order to consistently implement our growth strategy in this important market, we have also added a Board of Management position for China under the leadership of Hubertus Troska. With the establishment of the new sales company, we are now increasing the effectiveness of our sales organization and setting a course for long-term and sustainable growth.”The new sales company, Beijing Mercedes-Benz Sales Service Co., Ltd., combines the functions of sales & marketing, aftersales, 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. Previously, there were two sales channels – one for imported and one for locally-produced cars. As an important step towards the integrated organization, Daimler had in the middle of this year already increased its share of the import company Mercedes-Benz (China) Ltd from 51 to 75 percent.
Nicholas Speeks, President and CEO of Mercedes-Benz (China) Ltd, will become the CEO of the new sales company.
“China Sales Initiative 2015” – continuous expansion of product portfolio and sales centers
Daimler plans to sell 300,000 cars in China in 2015, about two thirds of which will be from local production. Daimler has already initiated key activities this year for long-term and sustainable growth in China within the framework of the “China Sales Initiative 2015” program:
- Equity interest in Mercedes-Benz (China) Ltd. increased from 51 to 75 percent.
- Market launch of new models, including the B-Class and M-Class, which are popular in China, as well as full availability of the locally produced GLK
- Expansion of dealer network to more than 220 dealerships in approximately 100 cities
- Development of “Sales Region West” with its headquarters in Chengdu, Sichuan, in order to better serve the complex Chinese market. Regional development is now complete along with the existing offices in Beijing, Shanghai and Guangzhou
- Addition of leasing to existing financial services in August 2012
In the medium term, the product portfolio of Mercedes-Benz will be continuously expanded: Approximately 20 new and refreshed models will be launched in China alone by 2015.
The dealer network is to grow by about 50 new dealerships each year – in particular outside the major megacities.
In addition, progress is being made with the expansion of local production: In a new engine plant, 4-cylinder gasoline engines will be produced as of 2013 for use in locally-produced Mercedes-Benz cars and vans. Existing capacities for the C-Class, the GLK, and the long-wheelbase E-Class will be increased in line with market demand from currently just over 100,000 vehicles, with 2014 seeing the addition of the new-generation Mercedes-Benz compact cars. In this context, the steady expansion of the Chinese supplier base will leverage cost-cutting potential.
Chinese customers are also playing an increasingly important role for Daimler and Mercedes-Benz with regard to research and development: Chinese groups are already participating in car clinics which allow customer feedback to flow into the product-creation process. In 2011, Mercedes-Benz was the first western premium manufacturer to set up its own design studio in Beijing in order to be even closer to the mobility trends of the future. Furthermore, Daimler’s local R&D activities and joint ventures will help China-specific product and market requirements to receive even more consideration in the product-development process.
Daimler’s new Board of Management position for China
China is highly important to Daimler not only for car sales, but also at the corporate level: China is now the world’s biggest market for motor vehicles. No other western automotive manufacturer is as well established in China as Daimler. On December 12, the Supervisory Board of Daimler AG appointed Hubertus Troska as a member of the Board of Management for the newly created “China” position. Troska is responsible for all of Daimler’s strategic and operating activities in China. With the new “China” Board of Management position, the company will ensure that all aspects of the dynamic market will be dealt with directly in the Board of Management in the future.
Overview: Daimler in China
Daimler Northeast Asia is based in Beijing and includes 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 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, South Korea and Taiwan.
Local production of Mercedes-Benz cars began with the predecessor series of the E-Class in the BBAC 50/50 joint venture 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, Mercedes-Benz Cars is represented in China with its complete product portfolio; almost 200,000 vehicles were sold in the year 2011. Approximately 50 new dealers will be added to the sales network this 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 providing automotive financing in China through Mercedes-Benz Auto Finance China since 2009. 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.Credits: Daimler AGCopyright © 2012, mercedesgla. All rights reserved.
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With the inauguration of the Beijing Sanlitun AMG Performance Center, Mercedes-AMG is breaking new ground. For the first time, the new store represents, exclusively, the AMG brand world; this makes it unique anywhere in the world. The AMG Performance Center in the Sanlitun Village North luxury shopping mall is situated at an exclusive top location in the centre of the Chinese capital and reflects AMG's pioneering role in design and technology in a modern setting. Today, 22 April 2012, the world premiere of the G 63 AMG takes place at the AMG Performance Center Beijing Sanlitun.Since 2008, 195 AMG Performance Centers have been inaugurated in 18 countries all around the world. Unlike the previous ones, though, the new store in Beijing is not integrated in a Mercedes-Benz dealership as a shop-in-shop. Instead with the so-called “stand-alone” concept, the focus is placed exclusively on products and themes of the AMG high-performance brand.
“With this new AMG Performance Center in Beijing we hope to be able to attract and care for current and potential AMG customers. Here in Sanlitun Village North we enjoy a premium location, one where customers and all those interested can experience our brand claim “Driving Performance” intensely. The new store will act as an example for future "stand-alone" Performance Centers which are planned for other metropolis”, says Ola Källenius, chairman of the Board of Management of Mercedes-AMG GmbH.
Avant-garde-style architecture
The AMG Performance Center in Beijing Sanlitun fascinates and captivates through its interior and exterior architectural concepts. The store, designed in an avant-garde style, is absolutely one of a kind and is primarily oriented towards customer contact, customer information and appreciation.
On two levels and a total surface area of 381 square metres, actual and prospective customers can inform themselves about current AMG High-Performance vehicles and their technological achievements, about the AMG Driving Academy, the AMG Collection and AMG’s involvement in motor sports. In similar manner to the sample room in the AMG Performance Studio in Affalterbach, they can also experience first-hand the virtually unlimited individualisation possibilities there are: the great wealth of paint finishes and leather trim colours can be experienced both visually and haptically with the help of samples specially created for the store.
Pride of place is taken by the motor sports history of the enterprise, which celebrates its 45th anniversary in 2012. Exclusive AMG cooperation partners are also represented by unique items: Santoni and IWC present their select editions and exhibits. An exclusive Customer Lounge for consultations with customers on the upper level invites visitors to linger.
Flexible possibilities of use for market launches, press and VIP events
Generously-dimensioned, functional surfaces allow for flexible uses, e.g. market launches, press conferences or media-effective VIP events as exclusive highlights. Naturally, it goes without saying that the Center is equipped with the most advanced video and audio technology. A sober, yet highly exclusive material language supports the concept of premium value and elegance: the wall covering on the lower level, for instance, is made of white, high-gloss glass. The AMG themes are presented in a series of niches, while a screen integrated in the wall surface informs or entertains.
The staging window with integrated turntable offers a place for the presentation of highlight vehicles. Floors of highly-polished black granite create an exciting contrast to the shining white wall behind. Customised furniture together with the entire decoration thus combine to create the ideal setting for the AMG brand world. A lift allows customers access to the parking places in the underground garage located directly below the Store. Numerous AMG vehicles are available there for spur-of-the-moment test drives.
Sanlitun Village North, the perfect location in Beijing
There were several convincing reasons to choose Sanlitun Village North as the location for the AMG Performance Center: the luxury shopping mall is seen as a particularly attractive downtown area by the inhabitants of this metropolis and by tourists as well. Numerous automotive and non-automotive brands have established themselves in the direct vicinity of AMG. The great amount of passers-by here means a high visitor flow can be expected. In this lifestyle-and-luxury environment that at night becomes a show mile for trend-conscious, affluent Beijing residents, the first stand-alone AMG Store is sure to be the talk of the town.
The extraordinary architectural concept itself intrigues: the vehicles offered, the exhibitions and the very atmosphere itself invite one to linger and seek information. Thus an impressively eye-catching close-up and remote effect of showroom and show window is created, one which makes the AMG Performance Center Beijing Sanlitun both a business card for the brand and at the same time an exclusive sales point for the high-performance vehicles from Affalterbach.
195 AMG Performance Centers inaugurated in 18 countries
The 195 AMG Performance Centers opened in all the central markets optimise individual customer communication. First-class customer support along all contact points with the customer is a key component of the AMG brand claim "Driving Performance". This commitment to the intensification of customer relations currently extends to 18 countries. A brand experience of a very special kind is made possible by the AMG Performance Roadshow.
The sales rooms of the AMG Performance Centers are characterised by a uniform, independent AMG brand presence. Premium materials, exclusive furniture and the world of colours typical of AMG create an exquisite ambience for conversations with customers. A larger-than-life AMG engine badge communicates to the visitor the "one man – one engine" philosophy, the manufacturing principle of the powerful hand-crafted AMG engines. And in the AMG Performance Centers the individualisation possibilities of the designo programme can be found in colour charts and genuine leather samples.
Targeted training of AMG sales and service experts by a coaching partner (obeying a worldwide uniform standard) ensures consistently first-class customer care. In addition, the hotline to Affalterbach guarantees excellent advice quality for the more demanding AMG customers: every AMG Performance Center can establish a direct communication with an AMG expert to deal with any questions that may arise concerning a product or configuration possibilities.
AMG Performance Roadshow with a particularly exclusive flair
The AMG Performance Roadshow provides a particularly special brand experience: this unique event enables the world of AMG to be experienced by up to around 200 customers in one of 195 AMG Performance Centers. Qualified staff bring customers and those who share an interest in the brand closer to the history of and fascination for all things AMG. The latest AMG High-Performance vehicles are also available for intensive test drives.* Official photos and details courtesy of Mercedes-AMG GmbH *Copyright © 2012, mercedesgla. All rights reserved.
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