HONG KONG — BYD Company has agreed to form a technology partnership for electric vehicles in China with Germany's Daimler AG, the parent company of Mercedes-Benz, Maybach and Smart.
U.S. investor Warren Buffett's Berkshire Hathaway has a 10 percent stake in BYD, the parent of BYD Auto, one of China's leading manufacturers of hybrid and electric vehicles.
Daimler and BYD said Monday they have signed a memorandum of understanding and expect to create a new brand.
Daimler Chairman Dieter Zetsche said: "We continue to push ahead as a global leader in electric mobility. Daimler's know-how in electric-vehicle architecture and BYD's excellence in battery technology and e-drive systems are a perfect match."
BYD founder and Chairman Wang Chuanfu said he is "very excited about this opportunity to work together with Daimler."
The partners plan to develop a new electric vehicle "specific to the requirements of the Chinese market." They said the vehicle would be marketed in China under a new brand jointly created and owned by both companies. The partners also plan to establish a tech center in China to design, develop and test EVs.
Daimler already has shown several small electric vehicles, including a battery-powered version of the Smart Fortwo. Later this year, it will launch an all-electric edition of the Mercedes-Benz A-Class compact. The German automaker also owns a minority interest in Tesla Motors, the U.S. electric-vehicle manufacturer, which is supplying battery technology for the Smart EV.
BYD last year introduced its battery-powered e6 crossover in China and has displayed the vehicle, along with several hybrid sedans, at various international auto shows.
Inside Line says: Will the new Chinese vehicle be christened the Smarter? — Anita Lienert, Correspondent
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