Filed under: China, Government/Legal, Mercedes-Benz



Daimler and Beijing Automotive are officially going steady, with the German company set to take a 12-percent stake in the Chinese brand tomorrow. The two are already tied up in a Mercedes engine plant in Beijing, of which BAIC will increase its stake in, from 50 to 51 percent. Daimler will also get two seats on the Chinese company's board. BAIC may also gain the ability to produce cars on Mercedes-Benz platforms, according to Automotive News Europe.

The investment in BAIC comes ahead of that company's initial public offering, according to a report form Bloomberg, which indicates the deal will be inked tomorrow in the Chinese capital. According to the report, if the circumstances are right, BAIC may turn around and invest in the Germany company "soon."

It's not entirely clear just how much the 12-percent cut is costing Daimler, although it seems reasonable to assume that, as it's ahead of the IPO, the parent company of Mercedes is getting a bit of a bargain.Daimler buying 12% stake in Beijing Auto originally appeared on Autoblog on Tue, 19 Nov 2013 08:00:00 EST. Please see our terms for use of feeds.



Permalink | Email this | Comments

More...
Autoblog
11-19-2013 09:00 AM

Beijing Automotive went steady with Chrysler in the 1980s and 1990s, making Jeeps including a stretch Cherokee that didn't come into the United States.

They used to make the 20-20, the Jeep used by the People's Liberation Army. It was an improved version of the Russian copy of the American Jeep.

__________________
Strelnik
Invest in America: Buy a Congressman!

1950 170SD
1951 Citroen 11BN
1953 Citroen 11BNF limo
1953 220a project
1959 180D
1960 190D
1960 Borgward Isabella TS 2dr
1983 240D daily driver
1983 380SL
1990 350SDL daily driver alt
3 x Citroen DS21M, down from 5
3 x Citroen 2CV, down from 6