Daimler takes a stake in state-owned Chinese car maker
For the first time in Chinese history, a foreign company is taking a major stake in a state-owned car manufacturer. Daimler AG announced the intention to take over 12 percent of its joint venture partner BAIC; the German company will also take two seats on the Board of Directors. With this move, the German premium car maker, which has been lagging behind its competitors in China for a many years, also has prospects for better relations with the Chinese government.
For Daimler, this news comes at the right time. In contrast to the European market, the Chinese automotive market is developing with solid growth rates, and more critically for Daimler, the premium segment continues to grow.
Source: Die Welt.
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