Beijing Automotive Group Co. Ltd. (BAIC Group) has taken a 5% stake in German automaker Daimler, improving on the long-standing strategic partnership that has existed since 2003.
The two companies have cooperated in the production, research and development, and sale of passenger cars, vans and trucks. In 2013, Daimler acquired an equity interest in BAIC Motor, a listed subsidiary of BAIC, and currently holds 9.55% of its shares. Since 2018, Daimler has also held an interest of 3.01% in BAIC BluePark New Energy Technology Co. Ltd., a manufacturer of electric vehicles for China.
“We are very pleased that our long-standing partner BAIC is now a long-term investor in Daimler. This step reinforces our successful partnership and is a signal of trust in the strategy and future potential of our company. The Chinese market is and remains a crucial pillar of our success – not only for sales, but also for our product development and production,” said Ola Källenius, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars.
Following this, Chinese carmakers now own a collective 15% share of the German auto group, illustrating the need for global carmakers to partner with Chinese rivals in order to capitalise on the world stage.