Geely buys 9.7 percent stake in Daimler

Geely buys 9.7 percent stake in Daimler

Chinese carmaker Geely has become the largest investor in Mercedes-Benz owner Daimler AG. With the deal, Geely now owns 9.7 per cent of the German manufacturer. The Chinese carmaker already fully owns Swedish manufacturer Volvo. China is a country that is vitally important to most manufacturers looking at having a global presence. The country is also already one of the biggest markets for cars.

In a statement by Geely, Mr Li Shufu, Chairman, Geely said he wanted to “accompany Daimler on its way to becoming the world’s leading electro-mobility provider,” and was looking for a long-term commitment, underlining the Chinese manufacturers commitment to developing electric mobility solutions for the Chinese market. China has committed to ensure that 20 per cent of all cars sold by 2025 would be either electric or hybrid.

Mr. Li stressed on the fact that ‘outside invaders’ from outside the traditional automotive industry are mounting a challenge to manufacturers and that it is imperative that carmakers cooperate and collaborate in such an environment.

A few days ago, Daimler announced a $1.9bn (£1.4bn) investment into a partnership with another Chinese auto firm, BAIC. The investment will go into building a new manufacturing facility that will produce Mercedes cars including EVs.

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