Shanghai (ZXZC)- The long-term partnership between BAIC Group, and Daimler and the technology cooperation among BAIC Group, BAIC Motor and Daimler will not be affected by the change in the equity structure of BAIC MBtech Development Center Co.,Ltd. (BAIC MBtech), BAIC Motor announced on October 17.

Mercedes-Benz GLB SUV; photo credit: Beijing Benz

According to the corporate data platform Tianyancha, BAIC MBtech, previously a joint venture held as to 51% and 49% by BAIC Motor and MBtech Group, became a wholly-owned subsidiary of BAIC Motor in May. In the meantime, its registered capital surged 590.25% to 69,025,316 yuan ($10,313,830), and the seats at the management team and the board of directors have been all held by the Chinese parent company.

MBtech and BAIC announced in 2015 the establishment of BAIC MBtech, the first joint venture technology center of its kind in China dedicated to providing vehicle R&D services to Chinese auto brands.

MBtech was founded in 1995 as a wholly-owned subsidiary of Daimler Group, and had worked as Daimler's important think tank in the auto R&D field. Thus, its pulling out of BAIC MBtech evoked rumors saying Daimler will stop the technology cooperation with BAIC Group.

However, BAIC Motor's announcement is of an official denial to the rumor. The Beijing-based automaker said MBtech's stake held by Daimler was all taken by AKKA Technologies after 2018. Meanwhile, Daimler also noted that MBtech is no longer its subsidiary and the latter's activities have nothing to do with both Daimler and Mercedes-Benz. The German automaker will be pleased to maintain the long-term partnership with BAIC Group and continue to implement its commitment to Chinese market.