BAIC is looking to invest in the German car maker. Daimler and BAIC have formed joint ventures in China to oversee production and sales of Mercedes Benz cars, but it seems that the two companies are negotiating more serious stuff.
Apparently, Chinese car manufacturer BAIC Motor is in talks with Daimler about investing in the German car maker, reports Reuters.
China’s large market is an oasis for car manufacturers and Daimler already owns a 10 percent stake in BAIC. The strategic partnership would allow the Chinese state-owned enterprise to become one of Daimler’s top shareholders, if the business plan follows the same equity-exchange path as the one conducted between Daimler and Renault-Nissan in 2010 (The companies made a deal that gives the Renault–Nissan Alliance a 3.1% stake in Daimler and Daimler a combined 3.1% in Renault and Nissan)
If negotiations are successful, then BAIC will be the third Chinese car maker to buy a stake in a foreign car manufacturer after SAIC bought shares in General Motors and Dongfeng Group invested in PSA.
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