By Max Bernhard
Deutsche Post AG (DPW.XE) said Friday that its subsidiary StreetScooter, which makes electric vans and trucks, is entering the Chinese market.
StreetScooter and China's state-owned Chery Holding Group signed a memorandum of understanding for a joint venture to locally produce, source and develop last-mile electric light commercial vehicles for the Chinese market, the German postal service said.
The car maker plans to enter mass production in 2021 targeting production capacities of up to 100,000 vehicles per year.
The deal is part of an economic agreement reached during German Chancellor Angela Merkel's trip to China, Deutsche Post, which is partially state-owned, said.
Deutsche Post acquired StreetScooter in 2014. According to media reports, Deutsche Post decided to develop an electric delivery vehicle itself after initial attempts to have one developed by a car maker failed.
Write to Max Bernhard at firstname.lastname@example.org; @mxbernhard