BAIC to be a big shareholder in Daimler by year-end, achieving cross ownership

Gasgoo.com (Shanghai August 27) - BAIC and Daimler is planning to deepen bilateral cooperation in various sections. BAIC Group will have realized shareholding in Daimler by the end of the year, becoming one of the biggest shareholders of Daimler, stated Xu Heyi, chairman of BAIC Group in the tenth establishment anniversary of the of Beijing Benz.

Upon the closure of the cooperation, it will put a satisfactory end to the two-year long plan of achieving cross ownership between BAIC and Daimler, another successful case that Chinese automakers purchase part share of large multinational automobile manufactures.

As the increasing expansion of production quantity and sales of Mercedes models built in China, a target might be realized in advance that sales proportion of models built in China will increase to two-thirds in Mercedes-Benz over sales in China.

Beijing Benz, the most advanced production base of Daimler worldwide, is currently conceiving export issues, indicating China's role in Daimler's strategy for global expansion will be further enhanced, Xu added.

In the past decade, Beijing Benz witnessed its production capacity surging by nearly 6 times, and total industrial output value jumping by around 8 times and the total plant area expanding by 1.5 times, revealing the long-standing close cooperation between the two parties.

Daimler has become the third largest shareholder of the Chinese BAIC Group by the time when they reached an agreement in 2013. Cooperation between the two sides will not only be limited in the area of conventional vehicles, but also expand to the alternative fueled vehicles. Mercedes-Benz plans to introduce at least 1 to 2 new products per year, alongside which the company will raise the proportion of alternative fueled vehicles to more than half in China from next year on.