As Daimler’s biggest joint venture partner in China, BAIC is reportedly looking to increase its stake in the German automaker, despite already taking an initial 5% stake back in July.
During some mid-October investor conferences, BAIC executives stated that “both sides are willing to increase stakes in the other,” while responding to questions regarding the future relationship of the two companies, reports Autonews Europe.
Last week, Daimler put out a regulatory filing revealing that HSBC held 5.23 percent in the German brand’s voting rights, both directly as well as through equity swaps. BAIC used HSBC to help put together the initial 5% stake.
Also read: Mercedes To Start Building The EQC, AMG A35 And GLB In China
A Daimler spokesman stated yesterday that HSBC sent them a notification regarding the 5 percent voting stake being exceeded.
“There is nothing to add to this,” said Daimler when asked whether it had anything to do with BAIC wanting a larger stake.
Meanwhile, Daimler’s largest shareholder, Geely, had this to say: “We are a long-term investor in Daimler. We do not react spontaneously to any volatility and we support Daimler’s management and their strategy.”
Geely holds a 9.7% stake in Daimler and also happens to own Volvo, while BAIC also has a partnership deal with Hyundai, aside from Daimler.
Still, it’s BAIC that’s been Daimler’s main partner in China, operating Mercedes-Benz factories in Beijing through Beijing Benz Automotive. Back in August, Mercedes announced that production will start on three new cars in China, specifically the EQC, the AMG A 35 L and the recently unveiled GLB crossover.
