Daimler and a China partner BYD will any deposit 400 million yuan ($62.5 million) to assistance speed a turnaround during their unprofitable electric car corner venture.
After a investment, a capitalization of a EV partnership, Shenzhen Denza New Energy Automotive, will arise to 4.16 billion yuan from 3.36 billion, BYD said.
It is a second time a dual automakers have recapitalized Denza. In May 2017, any automaker injected 500 million yuan ($72.6 million) into a corner venture.
Denza was incorporated in a south China city of Shenzhen in 2010. The association launched sales of a Denza 300 electric compress sedan in 2014.
Since then, Denza has introduced dual upgraded versions of a electric sedan. But though additional models, Denza’s sales have remained limited. In 2017, it usually sole 4,713 EVs.
With singular sales, Denza racked adult accumulative waste of 2.61 billion yuan from 2014 to 2017.
The association mislaid another 122 million yuan in a initial 4 months of a year though didn’t divulge sales during a period.
BYD, formed in Shenzhen, is China’s largest electrified car maker. It is 8.25 percent-owned by Berkshire Hathaway, a U.S. investment association tranquil by Warren Buffett.
Daimler also runs a newcomer car corner try in Beijing with internal state-owned automaker BAIC.
Contact Automotive News