BAIC Group takes 5% stake in Daimler AG for cooperation step-up

Shanghai (Gasgoo)- Chinese state-owned automaker Beijing Automotive Group Co.,Ltd (BAIC Group) announced on July 23 it has plowed investment in Daimler AG, a Stuttgart-based auto company who owns Mercedes-Benz, to cement their long-term strategic cooperation.

Currently, BAIC Group has owned 5% stake in Daimler AG, including  2.48 % of direct shareholdings and a right to acquire additional voting rights equaling 2.52 % of Daimler's share capital, underlining the successful longstanding partnership for both parties and reaffirming their mutual interests, said the Beijing-based auto group. 

Since 2013, Daimler has been holding equity in BAIC Motor, a Hongkong-listed subsidiary of BAIC Group, where Daimler owns chairs on the board of directors.

Two companies kicked off strategic collaboration in China's market as early as 2005. One of the most significant cases is the foundation of a joint venture between BAIC Motor and Daimler, Beijing Benz Automotive Co.,Ltd (Beijing Benz), which has now became a leader in China's premium car sector.

Besides, two parent companies jointly distribute cars through the channel of Beijing Mercedes-Benz Sales Service Co.,Ltd.

In 2012, Beiqi Foton Motor Co., Ltd., an affiliate of BAIC Group, set up a joint venture with the German automaker to produce medium and heavy duty trucks.

Then BAIC Group completed the unification of all Mercedes-Benz vehicles in China after it acquired 35% stake in Fujian Benz in March 2016.

Daimler possesses equity interest in some BAIC-held businesses as well. In 2013, the Stuttgart-based company invested in BAIC Motor and currently owns 9.55% shares in the latter.

Last year, the joint venture Beijing Benz acquired a manufacturing plant in Beijing Shunyi from BAIC Group. In the same year, Daimler purchased part of stake in BAIC BJEV, the NEV arm of BAIC Group, which went public in 2018 and changed name to BAIC BluePark New Energy Technology Co., Ltd.