If you are no longer useful, then you are no longer needed?

This sentence is aptly applied to today's joint venture brands...

It's scary to think about it. Perhaps this is the cruelty of business. Eliminating "redundancy" is a necessary choice for every enterprise to survive.

Nowadays, this is happening to BYD and Benz, who are currently in the spotlight.

On September 14th, according to multiple media reports, Benz officially withdrew from Denza Motors as a shareholder, and the 10% equity it held in Denza Motors was officially transferred to BYD, which means that Denza Motors will be solely "raised" by BYD in the future, without any more Benz "genes".

Judging from Denza's current favorable situation, Benz should not have made the "irrational" decision to completely withdraw at this time.

According to the latest data: From January to August 2024, Denza Motors sold a total of 79,894 vehicles, of which the Denza D9 sold approximately 71,200 vehicles. In particular, in the top 10 list of MPV sales in August, the Denza D9 ranked first with 9,181 units, outperforming joint venture models such as the Buick GL8, Toyota Sienna, and Toyota Granvia.

More importantly, Denza Motors has continued to focus on product launches this year. In addition to the launch of SUV models such as the N7 and N8, the Denza Z9 will also be launched on September 20th, aiming to capture 30% of the "56E" (BMW 5 Series, Audi A6, and Mercedes-Benz E-Class) market.

At the same time, Denza Motors has achieved 40% of its sales target of 200,000 vehicles this year.

So why did Benz choose to withdraw from the Denza brand at this time?

However, as of press time, Denza Motors, BYD, and Benz officials have not responded to this equity change.

What are the underlying reasons?

That brings us to the history of the Denza brand.

As everyone knows, Denza Motors was originally established as a joint venture between Benz and BYD in 2011, with each party holding 50% of the shares. At the initial stage of its establishment, the new energy vehicle market environment was not yet mature, and the development of Denza Motors was not smooth. From 2014 to 2018, Denza Motors successively launched the Denza 300, Denza 400, and Denza 500, a total of three models, but sales were consistently poor. In particular, in 2018, Denza sold only 1,974 vehicles. Over five years, Denza had to rely on continuous "blood transfusions" from both shareholders to survive, so the shareholders increased their capital seven times during this period, with a cumulative increase of over RMB 4 billion.

Due to severe losses, Benz officially took charge of Denza's sales, marketing, brand communication, customer service, network development, and other businesses from July 1st, 2019. However, as a joint venture brand, Denza still failed to boost sales and brand awareness.

It wasn't until 2021 that Denza Motors reached a turning point.

In December of that year, BYD increased its shareholding in Denza, raising its stake from the original 50% to 90%, while Benz's stake dropped to 10%. Since then, BYD has embarked on a comprehensive reform of Denza's technology, products, and channels.

As a result, Denza's sales have turned around from their previous sluggish state, experiencing explosive growth.

Based on past joint venture experience, one party typically provides technology, while the other is responsible for production. However, Daimler Benz was basically not involved in either aspect, let alone in the three electric technologies.

So, as the pioneer of automobile production, can Benz save face?

Is it surprising that this is the outcome?

In short, times have changed. The old order has collapsed, and a new order is taking shape.