Beijing Benz-DaimlerChrysler Automotive (BBD), a joint venture between Daimler and Beijing Automotive Industry Holding, will receive RMB 6.7bn (US$982m) from Daimler as compensation for capital and operation losses caused by the splitting of Daimler and Chrysler, China Business News reported.
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Its company source said BBD had already obtained the initial RMB 1.7bn. The compensation, to be paid by installment, will help the Beijing-based company cover losses and upgrade its production lines.
Daimler sold over 80% of its stake in Chrysler to Cerberus Capital Management for US$7.4bn in 2007, which damaged the Beijing venture’s assets and operation.
BBD said earlier it sold 875 C-class sedans in February, for year-on-year growth of 41%. It aims to achieve at least RMB7.5bn in sales revenue in 2009.
