By JAY MILLER
Germany’s Daimler AG and BYD Co. of China agreed to jointly develop an electric vehicle for the Chinese market, which last year became the world’s biggest market for cars.
The pact builds on Daimler’s deal with Tesla Motors Inc., a U.S. developer of electric cars, as the market for alternative-drive cars picks up with prodding from governments keen to reduce oil dependence and greenhouse-gas emissions.
In BYD, Daimler picks up a partner that has been developing battery technology since 1995. BYD gained a measure of credibility when Warren Buffett’s Berkshire Hathaway Inc. bought a stake in the auto maker in 2008.
“Daimler’s know-how in electric vehicle architecture and BYD’s excellence in battery technology and e-drive systems are a perfect match. Thus, we will be able to participate in the potential growth of electric mobility in China, currently the largest auto market of the world,” said Dieter Zetsche, Daimler chairman and head of Mercedes-Benz Cars.
Electric vehicles work best in cities, both companies noted, a condition that bodes well for the cars’ use in China.
Daimler recently launched an electric version of the Smart car and will launch an all-electric version of the Mercedes-Benz A-Class this year.
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