Daimler takes 12% stake in China's BAIC

  • 04-Feb-2013 08:26 EST
13C80_001.jpg

Sealing the deal are Dr. Dieter Zetsche (left), Chairman of the Board of Management, Daimler AG; and Xu Heyi, Chairman BAIC Group.

Daimler AG will take a 12% stake in BAIC (Beijing Automotive Group) as the latter prepares to launch an initial public offering (IPO). That aspect of the deal announced Feb. 1 is expected to be concluded by the end of 2013 or early in 2014, subject to government approvals. It would mark the first instance of a non-Chinese automotive company taking a stake in a Chinese OEM. Daimler would get two seats on the BAIC Board of Directors. In another aspect of the agreement, BAIC will increase its stake in a production joint venture between the companies called Beijing Benz Automotive Co. (BBAC) by 1% to 51%. This will enable BAIC to consolidate the joint venture prior to its IPO. BBAC has been producing Mercedes-Benz passenger cars since 2006. In addition, Daimler will increase its stake in the integrated sales joint venture Beijing Mercedes-Benz Sales Service Co. by 1% to 51%. Not involved in the deal is another Daimler and BAIC joint activity called Beijing Foton Daimler Automotive Co., Ltd., which has been jointly manufacturing BAIC's Auman-branded medium- and heavy-duty trucks since mid-2012. BAIC Group sold over 1.5 million vehicles in 2011.

Share
HTML for Linking to Page
Page URL
Grade
Rate It
5.00 Avg. Rating

Read More Articles On

2016-11-13
Lengthy automotive development and production cycles have long prevented automakers and startups from working together. While that’s changed a bit, many young companies still find it difficult to work with OEMs.
2016-11-16
BWI is developing what it believes will be a cost-effective system that would improve ride quality at lower cost than employing magneto-rheological (MR) suspension units.
2016-12-04
Swamy Kotagiri will discuss how to foster an innovative organizational culture during a Leadership Summit roundtable, April 4 at the SAE WCX17 in Detroit. He spoke recently with Automotive Engineering on this topic at Magna’s Troy, MI, offices during the company's annual Innovation Awards activity.
2016-11-29
While Donald Trump was blasting China for allegedly taking U.S. jobs, GM was quietly importing new China-made vehicles into the U.S.

Related Items

Technical Paper / Journal Article
2010-10-19
Training / Education
2017-05-04
Training / Education
2010-03-15
Technical Paper / Journal Article
2010-10-25
Training / Education
2017-09-13
Video
2017-02-03
Technical Paper / Journal Article
2010-04-12