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Daimler to advance cross-shareholding talks with BAIC

Source: Internet Info Agency | Date: Sept. 16

  • Daimler is in talks with BAIC Motor about allowing the Chinese partner to take a stake in the German carmaker although the outcome remains uncertain, Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG said. If it did, BAIC would become one of major shareholders of Daimler AG.

  • Daimler already owns a 10% stake in BAIC, the Hong-Kong listed unit of China's Beijing Automotive Group, which co-owns a joint venture to produce Mercedes-Benz passenger cars in China.

  • Thanks to the deepening tie between BAIC and Daimler, Mercedes-Benz has achieved significant sales growth in China. According to the latest statistics, during the Jan-Aug period, Mercedes-Benz's China sales surged 27.7% to 227,624 units amid China's economic new normal. Through the close cooperation with BAIC, Mercedes-Benz can deepen its localization strategy to further reduce costs in manufacturing and logistics. The cross-shareholding agreement is expected to help Mercedes-Benz increase the ratio of locally-produced vehicles to all models that are marketed in China from the current 66% to 70%.

  • In 2015, Mercedes-Benz will introduce three new models in China - the new GLC, new GLE, and C350eL plug-in hybrid.