The prominent German auto manufacturer Daimler — which owns Mercedes-Benz, the smart car brand, etc. — has acquired a 3.93% stake in Beijing Electric Vehicle Co, a subsidiary of China’s BAIC Group that is focused on the plug-in electric vehicle sector.
The stake acquisition represents part of a broader push in recent times by Daimler to deepen its involvement in China’s auto manufacturing sector — which is unsurprising considering that China is now home to the world’s largest auto market.
It should also be noted that, as car sales in Europe reach the point of permanently flatlining (or declining in the case of diesel cars), it makes sense for the firm to seek its fortunes elsewhere. After all, that’s what corporations do — whether they are ostensibly based in one country or not.
The Daimler board member in charge of operations in China, Hubertus Troska, commented (as quoted by Reuters): “The investment in BJEV marks yet another milestone in the strong cooperation between Daimler and BAIC for New Energy Vehicles in China, and it underlines our commitment to the further development of electric mobility.”
And a public statement was issued on the matter by the Chairman of BAIC Group, Xu Heyi, as well: “BAIC Group and Daimler have long maintained a deep, strategic partnership. New Energy Vehicles are one of BAIC Group’s core business areas, and Daimler’s investment in BJEV further expands our partnership, taking the cooperation between BAIC and Daimler into an entirely new stage of development.”
It’s interesting that this stake acquisition followed not long after the Chinese giant Geely announced that it had built up a roughly 10% stake in Daimler in recent years. Clearly, Daimler can expect closer cooperation with China’s auto industry in coming years.
Related: China Electric Car Sales In January — BAIC EC-Series & Cadillac(!) Shine
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