• Germany edition
 
Daimler to take stake in China's BAIC Motor
Photo: DPA

Daimler to take stake in China's BAIC Motor

Published: 01 Feb 2013 14:14 GMT+01:00
Updated: 01 Feb 2013 14:14 GMT+01:00

"Daimler and Beijing Automotive Group will significantly deepen their already strong strategic partnership," the German group said in a statement.

Under a binding agreement signed by Daimler chief executive Dieter Zetsche and BAIC chairman Xu Heyi in Stuttgart, "Daimler is going to invest in BAIC Motor, the passenger car unit of BAIC Group," the statement said.

"This important joint strategic move comes ahead of an intention by BAIC Motor to launch an initial public offering (IPO) in the future. Daimler's investment will take place through the issuance of new shares corresponding to a twelve percent stake in BAIC Motor," it said.

The purchase of the stake was subject to the approval by the relevant authorities and a closing of the transaction was expected "by the end of this year or early next year."

As part of the agreement, Daimler would receive two seats on the BAIC Motor's board of directors.

BAIC will increase its stake in the production joint venture Beijing Benz Automotive Company (BBAC) to 51 percent from 50 percent.

At the same time, Daimler would increase its stake in the integrated sales joint venture Beijing Mercedes-Benz Sales Service also to 51 percent from 50 percent.

"Following our technical cooperation with BAIC Motor and the setup of our integrated sales company, we are now taking the next step in deepening our relationship even further," said Zetsche.

"Our investment is a strong sign of the increased level of trust and cooperation between our two companies and clearly emphasizes the long-term commitment to a joint successful future of our two companies," he said.

AFP/mry

The Local (news@thelocal.de)

Your comments about this article

15:19 February 1, 2013 by smart2012
here it is: Daimler invests in China and will save in Europe (and btw, two weeks ago they announced that a Chinese group took 10% of Daimler shares)..

do u finally see where the business is going, and even more, where the cars for Asian market will be made? Not for sure in Germany
05:02 February 8, 2013 by honeybeee
The whole Germany car industry is consisted of many very smart car manufactures just like Benz, which is now intergrated with China¦#39;s Baic Moto to increase their own market share in China. The same example is Germany¦#39;s Schaeffler Ag ,a car-parts supplier company .They have been invested in the mainland china since1995. In order to be able to operate successfully, Schaeffler have established an effective international control system which is an integral part of its risk management. Foreign exchange risk is just averted because they have invested many places abroad in India and East Europe as well as in China which is all managed centrally by Schaeffler Corporation. In one word , they are another successful business model in Germany auto field.
Today's headlines
Opinion
Do German unions have too much power?
Lufthansa passengers rush to change their flights at Frankfurt Airport on Monday. Photo: DPA

Do German unions have too much power?

Germany's pilots and train drivers are taking it in turns to bring the country to a standstill with strikes that have cost the economy tens of millions of euros in the last two weeks. Are unions abusing their power or standing up for their rights? READ  

Older workers can have extra days off, court says
Photo: Workers in a German shoe factory. Photo: DPA

Older workers can have extra days off, court says

Older workers in Germany are allowed more time off than younger ones, a court ruled on Tuesday, saying the difference was not discriminatory. READ  

Expat's family battles for answers four years on
Matthew Fitzpatrick died in 2010 in Mannheim. Photo: Fitzpatrick family

Expat's family battles for answers four years on

In 2010 an Irish computer engineer was found dead in his apartment in Baden-Württemberg. Four years on, his family are still pressing the German justice system for answers. They feel badly let down by police who they say have refused to examine evidence of foul play. READ  

Court: Germany can keep arms deals secret
The judges of the Supreme Court announce their decision about weapons exports on Tuesday. Photo: DPA

Court: Germany can keep arms deals secret

The government can keep arms deals secret and only tell the public about them after contracts have been signed, the Supreme Court ruled on Tuesday. READ  

Tourist finds €7,500 instead of cheesecake

Tourist finds €7,500 instead of cheesecake

Just how honest would you have to be to return €7,500 that you found in a box supposed to contain your favourite cheesecake? READ  

Tanker fills up gas station with wrong fuel
Photo: DPA

Tanker fills up gas station with wrong fuel

Around 160 car owners are stuck after a gas station's storage tanks were filled with the wrong fuel, causing an estimated €100,000 in damage. READ  

Lufthansa strike hits 1,500 flights
Photo: DPA

Lufthansa strike hits 1,500 flights

UPDATE: In the second day of their strike, Lufthansa pilots have, as promised, extended their industrial action to include long-haul international flights until the end of Tuesday. READ  

Merkel tells allies to pay Ukraine's gas debts
Chancellor Angela Merkel in Bratislava, Slovakia, on Monday. Photo: DPA

Merkel tells allies to pay Ukraine's gas debts

Chancellor Angela Merkel on Monday called on Ukraine's allies to help the war-scarred nation pay off its gas debts to Russia, amid concern over gas supplies this winter. READ  

Steinmeier wants epidemic task force
Frank-Walter Steinmeier speaks at the World Health Summit in Berlin. Photo: DPA

Steinmeier wants epidemic task force

At the World Health Summit in Berlin, the Ebola crisis took centre stage at talks meant to create plans for how to handle future outbreaks. READ  

Nazi-stolen painting put on display, sort of
The Wiesbaden Museum in Hesse. Photo: DPA

Nazi-stolen painting put on display, sort of

The Wiesbaden Museum was once a collection house for art stolen from Jewish owners by the Nazi. With one painting, they hope to right at least one wrong while bringing awareness to its ongoing restitution work. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: Mariana Schroeder
Munich
Special Report: Hope and chaos at Munich's refugee shelters
Photo: DPA
Berlin
Robbers blow up Berlin bank
Photo: DPA
Culture
Can you top our history quiz leaderboard?
Photo: Facebook
Society
German motorcycle gang joins Isis fight
Photo: DPA
Politics
UKIP ‘seeks EU pact’ with German satirical party
Photo: DPA
Gallery
PHOTOS: World's biggest erotic fair opens in Berlin
Photo: DPA/Shutterstock
Gallery
11 things Germans are afraid of...
Sponsored Article
International School on the Rhine: a legacy
Photo: DPA
Gallery
The ten richest people in Germany
Photo: DPA
Business & Money
JobTalk: All you need to know about working in Germany
National
Share news tips with The Local Germany
Sponsored Article
Bilingual education from nursery to graduation at Phorms
Latest news from The Local in Austria

More news from Austria at thelocal.at

Latest news from The Local in Switzerland

More news from Switzerland at thelocal.ch

Latest news from The Local in Denmark

More news from Denmark at thelocal.dk

Latest news from The Local in Spain

More news from Spain at thelocal.es

Latest news from The Local in France

More news from France at thelocal.fr

Latest news from The Local in Italy

More news from Italy at thelocal.it

Latest news from The Local in Norway

More news from Norway at thelocal.no

Latest news from The Local in Sweden

More news from Sweden at thelocal.se

3,471
jobs available
Toytown Germany
Germany's English-speaking crowd