China’s geely buys a stake in Daimler, the owner of mercedes-benz.


Chinese carmaker Geely has become the biggest investor in Daimler, the boss of mercedes-benz, and has said it wants to work with the German electric car giant.

Shares in geely soared to Hong Kong after the weekend’s announcement of a nearly 10 per cent offer.

The Chinese carmaker already owns Sweden’s Volvo and black taxi maker London taxi.

Mr. Li is expected to meet with Daimler executives and German government officials later on Monday.

Geely’s 9.7 per cent stake in Germany’s leading carmaker has raised concerns that Chinese companies are seeking technology and innovation in exchange for deals.

But the German government said it saw “no need to follow the rules of competition or foreign investment”.

‘outside intruder’

China is widely seen as the most important future market for global carmakers.

Mr Li said in a statement that he hoped to “accompany Daimler to become the world’s leading supplier of electric cars” and sought long-term commitments.

He described what he called a “strategic vision” of a “foreign aggressor” in the traditional car industry that means companies need to work together through partnerships and alliances.

Daimler also announced a $1.9bn (1.4bn pound) deal with BAIC, another Chinese carmaker, over the weekend.

The companies said the money would be used to build Mercedes cars, including electric cars, at a modern baic plant.

Daimler and baike already work together in China, where foreign production is usually approved only through partnerships with Chinese companies.

Last week, German rival BMW announced a deal with the Chinese manufacturer Great Wall to produce electric mini cars for the domestic Chinese market.

The Chinese government says 20 per cent of electric motor sales should be electric cars or plug-in hybrid cars by 2025 – prompting many global carmakers to increase their investment targets in China.


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