Daimler’s main Chinese joint venture partner BAIC Group plans to double its stake to around 10% and win a board seat in the German luxury car maker, as it aims to upstage its rival Geely, according to Reuters.
State-owned Beijing Automobile Group Company Ltd (BAIC), which already owns a 5% shareholding in Daimler, has started buying the German company’s shares from the open market. BAIC is currently Daimler’s third largest shareholder but a stake of 10% will make it the biggest shareholder, surpassing its Chinese automaking rival Zhejiang Geely Holding Group which owns 9.69% of the German automaker and is seeking to expand its partnership with Daimler in China.
With the shareholding of around 10%, BAIC is looking to secure a seat at Daimler’s supervisory board, which Geely does not currently have. According to sources familiar with the matter, BAIC wants to be a bigger shareholder than Geely in Daimler in order to be seen as the German automaker’s senior-most partner in China.
Earlier in July this year, BAIC acquired 5% stake in Daimler stake after Li Shufu, chairman of Geely built a 9.69% stake in the German company in early 2018. Geely owns a number of companies including Lotus, London Taxi, Volvo and a 49.9% stake in Malaysian car maker Proton, while BAIC in addition to Daimler, has a partnership with South Korea’s Hyundai Motor Company.
A 3d animation professional with over 20 years of industry experience having served in leading organizations & production facilities of Pakistan, an avid car enthusiast and petrolhead with an affection to deliver writings to help shape opinions. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com