Chinese carmaker BAIC takes 5 percent stake in Daimler
Chinese carmaker Beijing Automotive Group Co. (BAIC) has taken a five per cent stake in Daimler, the firm that sells Mercedes-Benz cars. This move comes after another major Chinese carmaker Geely's owner, Li Shufu, took an almost 10 per cent stake in German carmaker, to develop a partnership in making electric and self-driving cars.
BAIC already has ties with Daimler. It partners with Daimler in China to sells Mercedes-Benz cars in China under the Beijing Benz Automotive joint venture. The Chinese carmaker has said that this move is meant to secure its partnership with Daimler.
This deal is one in a long line of collaborations between Western and Chinese carmakers. Thee alliances have their benefits, Chinese carmakers have a distinct edge in making EV components, and safeguard them against growing uncertainties related to global trade.
"This step reinforces our alignment with, and strong support for, Daimler's management and strategy," BAIC chairman Heyi Xu said of this development. Daimler already owns a stake in BAIC, which it bought in 2013