It wasn't until 2005 that Mercedes-Benz finally established a joint venture Beijing Benz-Daimler Chrysler Automotive (BBDC), with Beijing Automotive Industry Holding Co , and started producing E-Class autos.

"Daimler Northeast Asia and Mercedes-Benz have a long-term commitment to China. We are very happy to have great partners in China, and we are working together to introduce new vehicle technology and manufacturing technology to China," says Walker.

Moreover, "in 2006 we cemented our long-term commitment to China with Mercedes-Benz China Ltd moving from Hong Kong to Beijing," adds Walker.

In 2007, Mercedes-Benz began producing MB Vito/Viano and Sprinter vehicles together with partners of Fujian Motors Group and Taiwan-based China Motors Corp.

"And last month, we saw the all-new locally produced C-Class hit the market, expanding our local presence and deepening our relationship with BBDC," Maier adds.

JD Power &Associates forecasts luxury auto sales in China will more than double by 2014, to around 508,000.

"To continue to be automotive pioneers, we have to bring our latest technology to China in the shortest amount of time possible. We are bringing more of our lineup to China, investing in capacity, hiring more people and looking at increasing R&D and design in China as well," says Walker.

Dozens of premium models including the imported passenger car, sports car, and SUVs as well as locally produced C-Class and E-Class have been launched in China and became best-sellers in their market segments. Mercedes has also introduced the extremely high-end AMG brand to China last year and sold 300 units in nine months, an amount "far greater than our original expectations," says Maier.

"We continue learning that in order to be successful here, one must localize," says Maier. "As a global company, we must find the right balance between international standards and local practices. In addition to producing the C- and E-Class vehicles in Beijing, we will continue localizing our operations, our supply chain and our people".

"China is very significant for Mercedes-Benz and Daimler AG. As one of the fastest growing markets in the world, we place great emphasis on our long-term commitment. As mentioned, we are producing more vehicles including vans here and sourcing more and more parts in China - for production in China, and for export," Walker adds.

At the Auto China 2008 expo through April 20 in Beijing, "we will bring more than 30 models for exhibition, including a global premiere which shows ... our focus on the China market", says Maier.

(China Daily April 21, 2008)