Automotive Daimler BAIC

Published on December 22nd, 2019 | by Daniel Sherman Fernandez


BAIC rivals Geely to buy in 10 percent of Daimler

Last week there was hot industry news where Daimler‘s main China joint venture partner, BAIC Group initiated a plan to double its stake in the Daimler Group to around 10 percent and win a board seat in the Daimler Group. Sources in the industry said that the BAIC Group was on a mission to upstage its rival Geely.

State-owned Beijing Automobile Group Co Ltd (BAIC), which already owns a 5 percent shareholding in Daimler started buying the German company’s shares from the open market.

BAIC is currently Daimler’s third largest shareholder but a stake of 10 percent will make it the biggest shareholder, surpassing its Chinese rival Zhejiang Geely Holding Group which owns 9.69 percent of Daimler and is seeking to expand its partnership with Daimler in China.


With the shareholding of around 10 percent, BAIC is looking to secure a seat on Daimler’s supervisory board, which Geely does not currently have, the sources said.

The HSBC banking group, which advised BAIC on its 5 percent stake purchase in Daimler earlier, is helping the Beijing-based group in the new investment, one of the sources said.

Daimler said in a regulatory filing last month that HSBC held 5.23 percent in Daimler’s voting rights directly as well as through instruments such as equity swaps as of Nov. 15.

When asked by Reuters, Daimler said it had not received any notification about BAIC having raised its stake. Daimler’s China chief Hubertus Troska said on Friday “we welcome long-term investors in Daimler.”

A third source familiar with BAIC’s thinking said that BAIC wanted to be a bigger shareholder than Geely in Daimler in order to be seen as the German automaker’s senior-most partner in China.

Reuters reported in November that BAIC had signaled intentions to extend its investment in Daimler, citing sources familiar with the matter.

BAIC has been Daimler’s main partner in China for years and operates Mercedes-Benz factories in Beijing through the two automakers’ main joint venture, Beijing Benz Automotive.

Two months before its 5 percent stake purchase was announced in July, sources told Reuters that BAIC wanted to invest in Daimler to secure its investment in Beijing Benz Automotive.


The partners also planned to revamp manufacturing facilities to make Mercedes-branded trucks via their commercial vehicle joint venture Foton Daimler Automotive (BFDA), Reuters reported in August citing a document and sources familiar with matter.

BAIC built its 5 percent Daimler stake after Li Shufu, chairman of Zhejiang-based private automaker Geely, built a 9.69 percent stake in Daimler in early 2018.

By using Hong Kong shell companies, derivatives, bank financing and structured share options, Li kept the plan under wraps until he was able, at a stroke, to become Daimler’s single largest shareholder.

Since the investment, Geely and Daimler have said they plan to build the next generation of Smart electric cars in China through a joint venture.

Geely owns Volvo and a 49.9 percent stake in Malaysian car maker Proton, while BAIC, in addition to Daimler, has a partnership with South Korea’s Hyundai Motor.

About the Author is a service to the public and other website owners. is not responsible for, and expressly disclaims all liability for, damages of any kind arising out of use, reference to, or reliance on any information contained within the site While the information contained within the site is periodically updated, no guarantee is given that the information provided in this website is correct, complete, and up-to-date. is not responsible for the accuracy or content of information contained inside.

Comments are closed.

Back to Top ↑