Daimler and BYD will restructure their shareholdings in their joint venture Denza with Daimler now holding a 10 percent stake in the joint venture.
Denza is a joint venture established by Daimler and BYD in 2010 with an initial share ownership composition of 50:50 between the two. Denza itself produces and markets environmentally friendly vehicles.
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Daimler and BYD have been partners in the Chinese market since 2010 when they signed a 50:50 research and technology joint venture, BYD Daimler New Technology Co, which manufactures and markets new energy vehicles under the DENZA brand.
Now Daimler and BYD have signed an equity transfer agreement governing their shareholding in Denza. Under the agreement Daimler will hold a 10 percent equity stake while BYD will hold the remaining 90 percent stake.
No reason was given as to why the share ownership structure changed in Denza. But Daimler and BYD said they remain committed to their long-term partnership and aim to accelerate the development of DENZA in the Chinese market. Next year, DENZA plans to introduce several new car models.
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Separately, both Daimler and BYD have important electrification plans. Daimler plans to switch fully to electric power by the end of the decade where market conditions allow. Daimler currently sells four electric Mercedes-EQ models in China, three of which are produced locally. Meanwhile BYD has sold electric vehicles in more than 300 cities in 50 countries and six continents.