Rumors that the production of Mercedes-Benz E-class sedans in Beijing has been interrupted have been dismissed as groundless by company executives.

The Sino-German joint venture of Beijing Benz-Daimler Chrysler Automotive Corporation has just moved from an old factory site that had been in service for 43 years to the Beijing Economic Development Zone at Yizhuang in southeastern Beijing.

"The production of jeeps and vehicles for military use has been affected by the move, but the production lines for Mercedes-Benz sedans have been in operation in Yizhuang from the start, which helps explain why production of Mercedes-Benz sedans has not been affected," said Dong.

"The Benz production project in Beijing was well researched before the joint venture began production. We have been carrying out production and marketing by strictly following the state's policies regarding the automotive industry," Dong explained.

Mercedes-Benz E-class sedans, primarily E280 and E200K, assembled in Beijing from completely knocked-down parts, were out on sale on Dec.22, 2005, and supply has been short of demand ever since.

"With the strong market demand, both partners have agreed to increase production and marketing plans for 2006," said An Qingheng, chairman of the board for the Sino-German joint venture.

A total of 2,470 locally assembled Mercedes-Benz sedans were sold across China in the first quarter of the year.

Source: Xinhua