BYD, Daimler to recapitalize EV partnership
BYD Co. and Daimler will each invest 400 million yuan ($62.5 million) to help speed a turnaround at their unprofitable electric vehicle joint venture.
After the investment, the capitalization of the EV partnership, Shenzhen Denza New Energy Automotive, will rise to 4.16 billion yuan from 3.36 billion, BYD said.
It is the second time the two automakers have recapitalized Denza. In May 2017, each automaker injected 500 million yuan ($72.6 million) into the joint venture.
Denza was incorporated in the south China city of Shenzhen in 2010. The company launched sales of the Denza 300 electric compact sedan in 2014.
Since then, Denza has introduced two upgraded versions of the electric sedan. But without additional models, Denza’s sales have remained limited. In 2017, it only sold 4,713 EVs.
With limited sales, Denza racked up cumulative losses of 2.61 billion yuan from 2014 to 2017.
The company lost another 122 million yuan in the first four months of the year but didn’t disclose sales during the period.
BYD, based in Shenzhen, is China’s largest electrified vehicle maker. It is 8.25 percent-owned by Berkshire Hathaway, a U.S. investment company controlled by Warren Buffett.
Daimler also runs a passenger vehicle joint venture in Beijing with local state-owned automaker BAIC Motor Group Co.
It is the second time the two automakers have recapitalized Denza. In May 2017, each automaker injected 500 million yuan ($72.6 million) into the joint venture.
Denza was incorporated in the south China city of Shenzhen in 2010. The company launched sales of the Denza 300 electric compact sedan in 2014.
Since then, Denza has introduced two upgraded versions of the electric sedan. But without additional models, Denza’s sales have remained limited. In 2017, it only sold 4,713 EVs.
With limited sales, Denza racked up cumulative losses of 2.61 billion yuan from 2014 to 2017.
The company lost another 122 million yuan in the first four months of the year but didn’t disclose sales during the period.
BYD, based in Shenzhen, is China’s largest electrified vehicle maker. It is 8.25 percent-owned by Berkshire Hathaway, a U.S. investment company controlled by Warren Buffett.
Daimler also runs a passenger vehicle joint venture in Beijing with local state-owned automaker BAIC Motor Group Co.
