Mercedes Benz to Work on Opening a New Research and Development Center in China
Daimler AG will be opening a new research and development center in Beijing is being tasked with the further turning the Mercedes-Benz brand to attract wealthy Chinese and to close the sales gap with BMW AG and Audi AG. The German automaker decision demonstrated a desire to be deeply embedded in China and to make the best cars which is suited for the Chinese market.
Daimler is planning to expand the Mercedes Benz brand in China during the time where an investigation into anti competitive practices in the auto industry is making carmakers lower their prices. But Mercedes Benz itself previously stated that it will be cooperation with the investigation but no further details were released. The new research and development center signals a commitment to a market that would become the company’s largest as early as two years bearing in mind that the carmaker is planning to raise the number of engineers and specialists in Beijing to 500 before the year ends.
The research and development center will also cap a series of measures that will include reforms in the marketing and sales and increasing dealer numbers while focusing on Chinese taste will help Mercedes Benz catch up in the local car market. For this year Mercedes Benz hopes to sell 291,000 vehicles in China compared to Audi target of 581,000 and 448,000 for BMW.