Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Chinese Version   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home >> Automaker Email this story   Print this story
 
BYD, Daimler to recapitalize unprofitable EV joint venture
Automotive News China | 2017/5/19

BYD Co. and Daimler AG will each invest 500 million yuan ($72.6 million) to shore up their debt-laden electric vehicle joint venture in China.

Shenzhen Denza New Energy Automotive Co. will increase its capitalization to 3.36 billion yuan, up from 2.36 billion yuan. According to BYD, the money will help Denza expand its distribution network and improve brand recognition.

Denza, a 50-50 partnership between BYD and Daimler, has been unprofitable since 2014, when its sole EV model hit the market.

The Denza EV, a five-seat compact sedan, is powered by BYD's lithium iron phosphate batteries and has a range of 300 km (186 miles) on a single charge. It has a starting price of 369,000 yuan. With government subsidies, it still sells for more than 300,000 yuan.

Because of high prices and weak brand recognition, sales of the Denza EV fell 21 percent to 2,287 vehicles last year.

As sales stagnated, Denza lost 72.5 million yuan in the first three months of this year, following a loss of 1.3 billion yuan in 2016. 

BYD did not disclose sales of the Denza EV for the first quarter.

Denza is incorporated in the south China city of Shenzhen where BYD is headquartered. BYD is China's top producer of electric vehicles.

Related Stories
  • BYD plans EV assembly plant in Morocco
  •     --Published:2017/15/12
     
  • EV demand continues to soar
  •     --Published:2017/15/12
     
  • WM Motors to launch Weltmeister EV brand next year
  •     --Published:2017/12/12
     
  • Baidu to help fund Chinese EV start-up WM Motors
  •     --Published:2017/8/12
     
  • China will extend tax rebate to spur EV sales
  •     --Published:2017/5/12
     
  • BYD delivers 10 electric buses to Japan's Okinawa island
  •     --Published:2017/5/12
     
  • Faraday Future struggles to raise cash
  •     --Published:2017/5/12
     
  • Daimler rejects Geely's offer to buy 5% stake
  •     --Published:2017/1/12
     
  • Tesla forms r&d subsidiary in Beijing
  •     --Published:2017/1/12
     
  • NIO Capital to raise $500 million for auto investments
  •     --Published:2017/1/12
     
  • Why investors search for a Chinese Tesla
  •     --Published:2017/1/12
     
  • SF Motors prepares to pounce on U.S. EV market
  •     --Published:2017/28/11
     
  • Batteries -- not vehicles -- can boost BYD's profits
  •     --Published:2017/24/11
     
  • Global electrified vehicle sales set record in Q3 behind China
  •     --Published:2017/24/11
     
     

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     

     
     

    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
     
    Home | Help Center | About Us | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.
    ICP06057291