Beijing Automotive becomes the third largest shareholder of the Stuttgart giant, which in turn owns 9.55% of the Asian giant. Geely remains the leading shareholder
by Mario Cianflone
2 ‘of reading
Daimler again targeted by the Chinese. The German group that controls the Mercedes-Benz brands, smart and Amg, now has a second Chinese shareholder, after Geely. This is Baic, Beijing Automotive Group Co., which enters the capital of the Stuttgart giant with 5 percent. And this operation strengthens the link between the two companies since Daimler has been a shareholder of Baic since 2013. In fact, the three-pronged Star owns 9.55% of Baic and the two companies announced last year an investment of 1.5 billion euros in an assembly plant in China dedicated to Mercedes-Benz electric and hybrid cars , signed with the EQ category brand.
The Chinese group, with the purchase of 5%, thus becomes the third largest shareholder of Daimler, behind compatriot Geely, who has 9.69% and the sovereign fund of Kuwait, which holds about 7 percent.
Furthermore Daimler and Geely (which controls Volvo, the new Polestar, Lotus brand for electrification and wants to bring to Europe Link & Co) announced last March an alliance to produce in China by 2022 the next generation of small Smart cars, leaving the site French Hambach where the different twin Renault Twingo is also produced, by virtue of industrial agreements between Daimler and the French company which are now being dissolved.
The real goal of the Chinese, Geely and Baic, seems to be Daimler’s electric car battery technology and to start a joint venture for electric cars in Wuhan, China. For its part, the German group has announced that it will invest an additional 32 billion euros in 2018 and 2019 to “design” the future with new production facilities and research and development projects.
A worldwide network of factories for electrified vehicles is planned, which will allow flexible production of cars with heat engines (Daimler continues to believe in diesel) and “green” propulsion. And it is perhaps this that appeals to the Chinese.