"DaimlerChrysler will not build the second joint venture in Beijing and never import any models that are locally produced" according to the joint venture agreement, said An Qingheng, chairman of BAIC and BBDC.

"So we feel very proud and will insist in the commitment together with DaimlerChrysler to China's market, to offer world-class Mercedes-Benz and DaimlerChrysler sedans with worldwide quality standards."

BBDC, renamed from Beijing Jeep Corp, shows that "BAIC is working closely with DaimlerChrysler to reach for new heights. It will play an important role in the development of Beijing's automotive industry," An added.

Beijing Vice-Mayor Zhao Fengtong also expressed the government's hope and confidence in the world-class vehicles' local production centre. "We hope BBDC will set the pace to drive independent innovation in the Beijing auto industry."

"It sets a new benchmark in the automotive industry and is a symbol of the success of our long-term partnership with BAIC," said Zetsche. "We are grateful to China's central government and the Beijing municipal government for their ongoing partnership and support."

The manufacturing site includes Mercedes Car Group and Chrysler Group/MMC facilities, as well as a paint shop, stamping facility, logistics hall, environmental centre and energy management centre. The Mercedes Car Group and Chrysler Group/MMC facilities each include separate body shops and assembly areas designed to accommodate the specifications for each brand.

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