German auto giant Daimler AG has snow igned an agreement with its Chinese partner, Beijing Auto, to invest 2 billion euros into their joint venture in China.
The new investment will allow Mercedes to expand production of its compact luxury SUVs.
The money will also be used to set up an engine plant with a production capacity of 250-thousand units per year, as well as a research and development center.
Daimler contends China is a very promising market for Mercedes Benz's luxury compact cars.
It says one in five is expected to be sold in China by 2020.
