Daimler AG (AG) is exploring the possibility of further cooperation with new major shareholder Li Shufu’s Chinese car maker Geely, Chief Executive Dieter Zetsche said at Daimler’s annual general meeting on Thursday.
Mr. Li, who has accumulated close to a 10% stake in Daimler, is supporting the car maker’s long-term strategy and talks have been positive so far, Mr. Zetsche said.
Mr. Zetsche has previously said that the German car maker is interested in developing a closer relationship with Mr. Li’s Geely, but that any cooperation would need the backing of current Chinese joint-venture partner BAIC Motor Corp. (1958.HK).
Fair and free markets are in the interest of the company, Mr. Zetsche said as trade disputes loom between the U.S. and China, Daimler’s most important market.
“We stand up for free trade out of conviction,” Mr. Zetsche said.
China has threatened to raise tariffs on U.S. car imports following threats by U.S. President Donald Trump to impose tariffs on about $50 billion of Chinese imports. Chinese tariffs on U.S. car imports would hit German car makers Daimler and peer BMW (BMW.XE) particularly hard.