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Mercedes-Benz plans to increasingly rely on Chinese suppliers

18. April 2019

The parent company of Mercedes-Benz, Daimler AG, will increasingly rely on Chinese suppliers in the future and would like to intensify their cooperation. “The Chinese suppliers have a technological lead in the field of electric vehicles and connected driving compared to their competitors from the US and Europe,” says Wilko Stark, Head of Purchasing and Supplier at Mercedes-Benz. “The shift to electric vehicles and connected mobility has made us more dependent on external companies for battery cells and connectivity.” At a press conference in Stuttgart, which dealt with the group’s purchasing strategy, he said: “We will think about cooperation and joint ventures in certain areas. The general importance of alliances and development and purchasing partnerships is becoming increasingly important “.

Auto parts

In research and development, Mercedes-Benz will focus more on the leadership role of suppliers and also optimize internal processes to save costs. China is ahead of the US in many areas of digitalization and innovation in the sector, therefore the group will look for more suppliers in China. In the opinion of Stark, China’s role in the automotive sector will become dramatically more important in light of the increasing number of Chinese companies that supply Mercedes-Benz.

The Stuttgart-based manufacturer of luxury vehicles sold around 674,000 vehicles in China last year, a market that sets new standards in the field of electromobility and digital services. This is also one of the reasons why Chinese suppliers are ahead of their US and European competitors. Mercedes-Benz thus has no choice but to work together with companies such as Alibaba and Tencent in order to keep pace as a car manufacturer in the field of digitalization, said Stark at the press conference.

The Daimler Group is also looking for partners in China in the field of battery cells. In particular, new developments such as lighter batteries with a higher energy density are of interest to the company. Shorter charging times, longer range and lighter weight, as well as a lower price due to high volumes in production and purchasing, would allow Mercedes to offer electric vehicles at comparable costs as internal-combustion engine models. The aim is to work with suppliers who produce components for both conventional and electric vehicles. This will simplify the transition for Mercedes-Benz between these two drive technologies. Your company wants to export products to China as a supplier? Components and electronic components in China must pass the China Compulsory Certification (CCC). We advise you on the application and during the approval process.

For more information on how CCC certification may affect your company, or for more information about CCC certification in general, the process, and the associated costs, please visit our website and our News Section where you will find current updates twice a week.

Please do not hesitate to contact us for further details and consultation. You can contact us via e-mail, or call us (UK: +44 2071931135, Rest of Europe: +49 69 2713769150, US: +1 773 654-2673).

You can also check out our free CCC-Brochure, which can be downloaded right here as a PDF file or you consult our book (in English) “A Brief Guide to CCC: China Compulsory Certification”, which can be found directly here on Amazon.

MPR Author

About the author: Julian Busch is founder and managing director of MPR China Certification GmbH
Publisher: MPR China Certification GmbH

Tel.: +49 69 271 37 69 150

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