Shanghai (ZXZC)- On February 25, one day after Geely announced it has been the largest shareholder of Daimler, BAIC Motor revealed its latest investment cooperation with the German automaker.

BAIC and Daimler plans to invest over RMB 11.9 billion (about 1.5 million euros) to expand the local production scale of Mercedes-Benz passenger vehicles and meet the demands of the largest auto market in the world. The announcement says that the money will be for the establishment of Beijing Benz’s new factory to produce several Mercedes-Benz models, including the electric models.

Last July, BAIC and Daimler signed a framework agreement to jointly invest RMB 5 billion and set up new production base and power battery factories. They plan to produce battery electric vehicles together.

Just two days before the new cooperation announcement, BAIC and Beijing Benz have reached final definitive agreement about asset sale, according to a statement of BAIC Motor. The parent company will transfer its production base in Shunyi, Beijing to the joint venture, whose value is about RMB 5.84 billion.

Public data show that built in 2011, the base covers a total of 1.06 million square meters. The models produced there include Senova D70, D50. After the completion of the second phase, the factory’s production capacity can be up to 300,000 units.