Daimler AG’s largest shareholder, Zhejiang Geely Holding Group Co., discussed plans for its stake purchase with the German carmaker’s Chinese partner before buying the stock, setting the stage for future cooperation with the new investor, Chief Executive Officer Dieter Zetsche said.
Geely’s move may revive Beijing-based
BAIC Motor Corp.’s earlier
interest in acquiring a holding in Daimler, Zetsche told journalists Tuesday at the Geneva International Motor Show. In a discussion with the German CEO, Geely owner Li Shufu outlined possible car-industry strategies “which could be bundled” as long as the partners can reach a consensus amid existing third-party tie-ups, Zetsche said.
“It was a good conversation with a very successful entrepreneur,” and Li “confirmed his positive view of our company,” Zetsche said.
Geely bought 9.7 percent of Stuttgart-based Daimler last month, the biggest single
investment by a Chinese company in Germany, and the largest in any automaker globally. Li also owns Swedish manufacturer Volvo Car AB, whose CEO said at the show that he’s keeping a distance from Mercedes-Benz owner Daimler because they’re competitors. The Chinese billionaire’s other recent automotive-industry purchases include
control of British sports-car maker Lotus Cars Ltd. and the biggest stake in truck producer
Volvo AB, the former owner of the Swedish auto brand.
BAIC and Mercedes will cooperate on building their fifth car in China this year, and they’re set to work jointly on an electric crossover under the German company’s EQ nameplate to come out in 2020. Daimler is in talks with potential partners on expanding its Car2Go car-sharing business in the country.