Daimler and BYD transfer equity in Denza
Daimler is withdrawing its interest in beleaguered Chinese luxury electric car brand Denza while BYD increases its investment.
In 2010, Daimler and BYD hooked up in a 50/50 joint venture - BYD Daimler New Technology Co. In 2012, the Shenzhen DENZA New Energy Automotive Co., Ltd joint venture introduced China’s first and only all-electric vehicle, which was launched commercially in 2014. Since then, the company has struggled to sell more than 14,000 units, resulting in heavy losses.
So, BYD and Daimler have now agreed an equity transfer in Denza, which will result in it being 90% owned by BYD and 10% by Daimler.
Although Daimler says it is still “committed as a shareholder”, it will enable the German car maker to focus on the Mercedes brand. BYD, on the other hand, has enjoyed huge success with plug-in car sales recently, and intends to make further investments into Denza and launch new models in 2022. It’s an interesting move for BYD, which has been busy in Brazil, was reported earlier in 2021 to be launching a new premium electric car brand.
Image courtesy of DENZA.