Germany's Daimler AG says it has signed a contract with China's BYD Co. to form a joint venture developing electric cars in China. It said the two will invest 600 million yuan ($88 million) in the enterprise.
Daimler said Thursday that the 50-50 joint venture will be called Shenzhen BYD Daimler New Technology Ltd.
It will develop a new generation of electric vehicles that will bring together Daimler's know-how in building and safety with BYD's experience in battery technology.
The two companies had signed a memorandum of understanding on the venture in March.
It isn't yet clear when the planned new vehicle might be ready.
