BEIJING -- Germany's Mercedes Benz was given the green light Tuesday by China to produce sedans with local partner BAIC, the company said.
Beijing-based BAIC said construction of a new plant is expected to soon begin and the company should be producing cars by July.
The venture company is expected to produce about 25,000 Mercedes C and E-class cars a year. It also has the right to set up dealerships across the Chinese capital, BAIC said.
Mercedes, which is part of the Daimler Chrysler group of Detroit, has already invested $1.2 billion in the production plant, and it has also provided $60 million to establish a research center in Beijing.
