Dieter Zetsche: Beijing Automobile Investing into Daimler

Dieter Zetsche has decided to put all chips into Chinese market for the next three years.

In Frankfurt Motor Show which is just finished, Dieter Zetsche, Chairman of the Board of Daimler AG and global CEO of Mercedes Benz, has declaimed that Beijing Automobile is investing into Mercedes Benz parent firm after Daimler investing Beijing Automobile.

From capital perspective, Beijing Automobile has found Beijing Benz passenger car project with Daimler, and its Futian Automobile has joint capital with Daimler commercial car. There is rumor about Beijing Automobile invests into Daimler for a while, but it is the first time confirmed by party concerned. It is a deeper cooperation between both sides after Equity Swap Agreement between them at the beginning of this year.

It will be the deepest and most complicated transnational capital partners if it is successful. With the message about Dongfeng investing PSA shares, “China capital source” has leaded transnationally auto companies’ cooperation. As for Beijing Automobile, Daimler olive branch is in time and with sincerity. Beijing Automobile will be more attractive for holding shares of Daimler.

Meanwhile, holding Daimler shares will be catalyzer for equity swap agreement between both sides. It also means that the way for Beijing Automobile going IPO is open.

“We do have the plan for Beijing Automobile investing into Daimler. But we still have some details to figure out.” Dieter Zetsche said that they are discussing about technical and capital cooperation still.

Inner staff of Beijing Automobile told reporter that he heard a similar plan, but has not seen details yet. It might because of final cooperation details have not been figured out, still under discussion.

Daimler has not stopped searching for strategy investor since struggling with capital in economy crisis in 2008. China Investment Co. LTD. was the first rumor company, but Beijing Automobile has come to public since 2012 as a partner of Daimler. But they are testing each other at that moment.

Dieter Zetsche has considered about solving all problems by one shot. The move is named “Bei-Dai-He plan”. Feb. 1 is the last trading day for equity swap agreement between two company, but Beijing Automobile holding shares of Daimler seems the final end of “Bei-Dai-He plan” according to cooperation between Beijing Automobile and Daimler goal.

Dieter Zetsche told media in Frankfurt Motor Show that the entire plan which includes Daimler holding 12% shares of Beijing Automobile is waiting for government approve. At present, the two companies have confirmed and waited for response from government. Beijing Automobile and Daimler purpose is concordant: develop together, success together.