China's automobile industry revolution
Hubertus Troska, president and CEO of Greater China Daimler, the parent company of Mercedes, spoke to Sky News the wheel of a Mercedes E-Class built not in Germany but in China.
You look back 30 years, you could not own a car, M. Troska said all bikes and now you look at the city of Beijing - it is so fascinating; China is absolutely amazing.
Mercedes-Benz is sold as a brand and a badge stands for safety, reliability and quality of China, historically at least, is known to neither of these qualities.
Yet in 2008, Mercedes has made a historic decision for the manufacture of some of its cars in Beijing last month, she chose China for the first engine plant outside Germany of the company.
Image Many German car companies now build their products in China, for China.
It really is the world's largest car market, so that all car companies in the world would be in China and want a strong position in China, he said.
There is no doubt what is already today the largest and the largest market in the world and is the fastest growing market as well.
Mercedes continues expansion in China follows moves made by Volkswagen, Audi, Fiat, BMW and it speaks volumes about the importance of the Chinese market.
It also illustrates how China came because in many sectors it is no longer the floor of the factory sweatshops of the world it has turned into a leading world player with a lot to offer.
This is the size of 19 football pitches Dr. Markus Keicher boasts that we are entering one of the huge buildings representing complex Mercedes large factory in southern Beijing.
It took months to convince the company to leave Sky News have a peak inside it takes the one-hour journey through the thick traffic to reach Beijing.
Dr. Keicher is the CEO of Mercedes engines the powertrain and building new Mercedes factory Chinese engines, is his kingdom.
The sprawling complex is so big, there is provided a golf cart to show us everything around us looks at the state of the art.
Robotic-arm under the German mark, fixed to the ceiling, whoosh from one zone to another.
The workers, almost all Chinese, the man their stations with the help of some robots build their engines.
The workers are all trained in Germany, Dr. Keicher said they are trained to the highest level.
His colleague interrupts we give them the full German experience; we try to bring them to the beer festival while they are on training in Germany.
Mercedes-Benz is one of many German brands, is not limited to the automobile industry, which have been blocked in China, and reaping the financial rewards for many years.
The manufacturing economy, Germany gives a clear advantage on the export market, however, many German companies have taken their operations in China to another level; they now build their products in China, for China.
The basis of domestic consumption in China is becoming larger and richer it becomes increasingly the key to financial growth brands like Mercedes.
Place their factories in China reflects China's manufacturing confidence, but it also proves the company believes that local production is the key to winning the Chinese market.
British Jaguar Land Rover, now the Indian property, is currently building a plant outside Shanghai; a move he hopes will consolidate its remarkable success in the Chinese market.
He stressed the decision represents an expansion, not a change in the production of their factory West Midlands.
To operate in China, foreign companies must establish joint ventures with Chinese counterparts The result for Mercedes, was Beijing Benz Automotive Company BBAC.
The CEO of BBAC is a German named Frank Deiss The two management levels are the two Chinese positions.
We are extremely fast growth here, he said If you have an outside view, a lot of construction going on, he told me that we look at a Chinese class C drive on the production line.
At present, we have a capacity of about 140,000 units of cars per year, but as you can see, the capacity continues to increase, he added.
BBAC currently three Mercedes models in China C-Class, E-Class a long wheelbase designed, and the GLK SUV 4x4.
They are identical to their German cousins in every way, except the Chinese writing on the back.
For now, Chinese Mercedes are sold only in China but other foreign companies with Chinese factories are considering selling their cars abroad.
Volvo CEO Hakan Samuelsson said recently that its cars made in China could soon be on sale in the West.
Nobody cares if Volvos come from Ghent in Belgium or Sweden Nationalities are for football, he said.
In 2012, 50 Mercedes-Benz cars sold in China were built in China they hope that this will increase to three quarters in a year.
The engine plant has a current capacity of 250 000 annually Again, we're told, this will increase.
In October 2013, global sales of Daimler, the parent company of Mercedes-Benz and Smart BBAC, rose 15.
In China, October sales rose 9 1 with 17.348 vehicles offset in the month.
The figures for the other German car manufacturers with even China footprint emphasize the importance of local investment and local production.
Sales of Audi cars in China increased from 32 to staggering 407,738 in 2012 BMW sales increased by 41 over the same period.
We fully recognize the overall success of the company Mercedes in the world, depends in large measure our success in China, Daimler CEO says Hubertus Troska.
We want to become even more successful in China, contributing to the overall success of the company.
After being asked why it makes sense to build locally, M. Troska said we want to grow in this market, we must become more local.
And so we put a lot of manufacturing in this country now, we invest massively - only two billion in the next two years - to expand our ability to build local vehicles so that we can better meet the local needs of our customers here China.
But what are their safety cars made in China really as safe and reliable as those made in Germany Of course, he told me, no question.
We are Mercedes-Benz, so we build Mercedes-Benz standards and vehicles that we produce in China are exactly the same quality as in Germany or any other plant, he insists.
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