Daimler Buys 3.93% in BAIC Subsidiary Beijing Electric Vehicle
By Max Bernhard
Daimler AG (DAI.XE) said Thursday that it has acquired a 3.9% stake in Beijing Electric Vehicle Co., a subsidiary of BAIC Motor Corp. (1958.HK).
The maker of Mercedes-Benz cars said the investment follows a framework agreement with its longstanding joint-venture partner BAIC to increase cooperation in the new-energy vehicle sector.
Daimler's investment in the BAIC subsidiary comes after Li Shufu, the chairman of Chinese car maker Geely Automobile Holdings Ltd. (GELYY), bought a near 10% stake in the German car maker at the end of February. On Tuesday, Daimler Chief Executive Dieter Zetsche said the car maker was interested in a closer relationship with Geely, but that any cooperation needed the backing of BAIC.
"The investment in BJEV marks yet another milestone in the strong cooperation between Daimler and BAIC, and it underlines our commitment to the further development of electric mobility in this country," said Hubertus Troska, who is responsible for Greater China on Daimler's board.
Write to Max Bernhard at Max.Bernhard@dowjones.com; @mxbernhard
(END) Dow Jones Newswires
March 08, 2018 03:46 ET (08:46 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.