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.
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.
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