Report: China's BAIC buying into Daimler?

Report: China's BAIC buying into Daimler? image

Text: Marcus De Guzman / Photos: | posted September 14, 2015 11:38

BAIC in talks with Daimler for possible stake

It appears that Chinese automaker BAIC will soon be a stakeholder in Daimler after Automotive News Europe reported that the two companies are in talks over the matter.

It is not yet clear what would materialize from the deal but Daimler already put up a 10% stake in BAIC, who also co-owns a joint venture to manufacture Mercedes-Benz passenger cars in China.

Daimler CEO Dieter Zetsche stated that the deal between the two companies could result in a cross-shareholding but there aren't any concrete steps yet from the negotiations. Zetsche added that it would be up to the potential investor (BAIC) to come up with something for the planned stake-holding.

In the past, both Daimler and BAIC have deepened their ties. Last December 2013, BAIC took a 51% stake in a China-based manufacturing joint venture which allowed them to produce new Mercedes C and GLA classes. Daimler on the other hand got a 51% stake in a Chinese sales organization for Mercedes-Benz cars.

If the deal between the two companies pull through, BAIC would become the third Chinese automaker to invest in an overseas automaker after Dongfeng and SAIC, who each took a stake with PSA/Peugeot and General Motors respectively.

Source: Automotive News Europe