Home > Daimler to increase stake in China's BAIC Motor

Daimler to increase stake in China's BAIC Motor

article image Daimler to increase stake in Chinese car maker, BAIC Motor.

German carmaker Daimler AG said on Tuesday that it will take a 12 per cent stake in China's Beijing Automotive Group (BAIC).

As AAP reports, the purchase is part of the company’s move to increase its presence in China.

One of China’s largest auto makers, BAIC sold 1.7 million vehicles last year. BAIC Motor will take 51 per cent of the manufacturing joint venture with Daimler while the German automaker takes 51 per cent of the sales joint venture with BAIC Motor. 

"The strategic investment proves our long-term commitment to China and our partner," Dieter Zetsche, Daimler's chairman of the board of management and head of its Mercedes-Benz Cars unit, said in a statement. 

BAIC has a decade-old joint venture with Daimler and began producing Mercedes-Benz cars in 2006. This year the company began making four and six-cylinder engines and it also produces Auman medium and heavy trucks.

Around 210,000 Mercedes-Benz cars were sold in China last year.

According to Daimler, the agreement has the approval of China's central government. 

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