BAIC to take 40% stake in Fujian Daimler by year end

Shanghai, November 11 (Gasgoo.com) Beijing Automotive Industry Holding Co. (BAIC) has confirmed to local media that it will sign a deal with Fujian Motor to take over Fujian Daimler’s 40% stake.

As reported, Fujian Motor is to keep 10% stake on hand and sells the 40% segment to BAIC, with the rest 50% going to Daimler Light Vehicle (Hong Kong) Co., Ltd, a joint venture between Daimler Group and Taiwan China Auto Company.

BAIC has not disclosed the detailed amount for the deal yet but said the specific amount will be announced on the day the agreement is signed.

“This stake distribution doesn’t mean the future ownership will go to Daimler. We are looking forward to taking measures to keep pace with Fujian Motor on the significant decisions.” A BAIC executive added.

The new joint venture of Daimler and BAIC will produce two MPV models of the Benz brand, including Vito and Viano while the sedan production line will be still based in Beijing.

The Chinese government announced earlier this year that it plans to encourage consolidation of its auto companies into a "big four" and a "small four" segment to make the industry more competitive with established foreign rivals.

BAIC said this merger is right followed the government’s policy and it is seeking the proper business partner to integrate the domestic and oversea sources.