Siemens AG and Beijing Automotive Industry Holding Co., a major
Chinese car maker known as BAIC, have formed a joint venture to
make engines for hybrid and electric vehicles.
The joint venture, Beijing Siemens Automotive E-Drive System
Co., will use the German industrial conglomerate's electric drive
components for a range of BAIC vehicles. Small volume production of
the electric drive trains will begin this year, with mass
production of over 100,000 units starting in 2015 at a new
Beijing-based factory.
This is the first electric engine joint venture for Siemens in
China, while BAIC also has partnerships with Hyundai Motor Co. and
Daimler AG.
Financial details of the transaction weren't disclosed. The
companies signed the agreement at the 2014 Beijing International
Automotive Exhibition over the weekend.
The deal is part of the Chinese government's initiative to
improve environmental standards using New Energy Vehicle
technologies, Siemens said. BAIC will use the engines and inverters
in its S, C and L model series.
Write to Monica Houston-Waesch at nikki.houston@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires