• 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
Foreigner toll to hit motorways only
Transport Minister Alexander Dobrindt. Photo: DPA

Foreigner toll to hit motorways only

Transport Minister Alexander Dobrindt plans to limit his road toll for foreigners initially to motorways only, Spiegel reported on Sunday. READ  

Criminals blow Berlin Sparkasse wide open
The damaged bank branch. Photo: DPA

Criminals blow Berlin Sparkasse wide open

Criminals robbed a Berliner Sparkasse bank branch early on Sunday morning - using a bomb. READ  

French retread path to Berlin finance ministry
French Economy and Finance Ministers Emmanuel Macron (l) and Michel Sapin. Photo: DPA

French retread path to Berlin finance ministry

French and German ministers are due to meet on Monday to discuss ways of boosting growth in Europe's two biggest economies, as Paris called on Berlin to step up investment. READ  

Lufthansa pilots to strike for 35 hours
Grounded. Photo: DPA

Lufthansa pilots to strike for 35 hours

Pilots' union Cockpit has called a new 35-hour walkout at Lufthansa starting Monday, hours after a weekend-long rail strike finished. READ  

German dies after trying to take ravine photos
Photo: File photo/Shutterstock

German dies after trying to take ravine photos

A German student has died after falling into a steep ravine at a waterfall on a popular Malaysian resort island, police said on Sunday. READ  

Academic makes Twitter splash saying 'Nein'
File photo. DPA

Academic makes Twitter splash saying 'Nein'

Former Ivy League professor of German Eric Jarosinski has become a Twitter phenomenon developing a huge social media following thanks in no small part to saying no in German. READ  

Klopp slams Dortmund as slump continues
Jurgen Klopp looks downcast as Borussia Dortmund suffer another defeat. Photo: DPA

Klopp slams Dortmund as slump continues

Jurgen Klopp slammed his Borussia Dortmund side after Saturday's 2-1 defeat at Cologne made it five Bundesliga games without a win ahead of Wednesday's Champions League clash at Galatasaray. READ  

Michael Müller will be Berlin's next mayor
Michael Müller. Photo: DPA

Michael Müller will be Berlin's next mayor

Berlin’s development senator, who led the controversial project to develop Tempelhof Airport, will be the capital’s next mayor. Michael Müller won almost 60 percent of the vote among members of the ruling Social Democratic Party (SPD) on Saturday. READ  

Train Strike
Rail strike cripples Germany's train lines
Passengers wait for buses outside Erfurt station on Saturday morning. Photo: DPA

Rail strike cripples Germany's train lines

Rail travellers on Saturday faced huge delays and disruptions on one of autumn's busiest travel weekends as the train drivers' union began a 50-hour strike. READ  

Freed hostages back at German embassy
Stefan Viktor Okonek and Henrike Dielen are welcomed by German Embassy officials upon their arrival at Villamor Airbase in Pasay city, south of Manila, the Philippines. Photo: DPA

Freed hostages back at German embassy

Two Germans kidnapped by Islamic militants in the Philippines are safely back at their Manila embassy, officials said on Saturday after a harrowing six-month ordeal in which they endured threats of beheading and seemingly routine cruelty. READ  

RECEIVE OUR NEWSLETTER AND ALERTS
Photo: DPA
Travel
This is the man who has stopped Germany's trains
Photo: Shutterstock
Business & Money
Expats: Should I stay or should I go?
Photo: DPA
Gallery
PHOTOS: World's biggest erotic fair opens in Berlin
Photo: Screenshot
National
German jihadist threatens 'filthy' Merkel
Photo: DPA/Shutterstock
Gallery
11 things Germans are afraid of...
Photo: DPA
Business & Money
Time to loosen the purse strings?
Photo: Shutterstock
Business & Money
Which expat foods do you miss the most?
Sponsored Article
International School on the Rhine: a legacy
Photo: Shutterstock
Business & Money
How to get hired at a Berlin startup
Photo: DPA
Berlin
Ebola 'prankster' shuts down Berlin bar
Photo: DPA
Features
215 countries, 26 years and one engine
Photo: DPA
Society
Leipzig 25 years ago: 'We were scared of being shot'
Photo: DPA
Gallery
What do other countries warn about Germany?
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

3,422
jobs available
Toytown Germany
Germany's English-speaking crowd