Mercedes-Benz’s China joint venture began production of the M270 series of engines for the GLA compact crossover at its powertrain plant in Beijing last week.
The engines will power the GLA produced by the joint venture, the company said.
Beijing Benz, a 50-50 partnership between Mercedes parent Daimler and Beijing Automotive Industry Holding Co., has now localized all engine production for the three models it produces in China -- -- the GLA, C class and E class.
The factory is Mercedes' only engine plant outside Germany. Last June, the factory started exporting cylinder heads, engine blocks and crankshafts to Germany.
Mercedes is China's third-largest luxury brand behind Audi and BMW. In the first two months of this year, Mercedes sold 48,059 vehicles in China, up 14 percent over the year-ago period.