BERLIN: Daimler and its Chinese partner BAIC plan to invest almost $2 billion in a state-of-the-art factory in China, underlining their relationship as rival Geely makes a surprise swoop on the German carmaker.
The two will invest more than 11.9 billion yuan ($1.88 billion) in modernising a plant to build premium Mercedes-Benz cars including electric vehicles, BAIC said in a filing to Hong Kong Stock Exchange.
The chairman of Chinese carmaker Geely said late on Friday he had bought an almost 10 per cent stake in Daimler, in a $9 billion bet to access the Mercedes-Benz owner’s technology.
The move poses a challenge to Daimler, which as well as its Chinese partnership with BAIC Motor Corporation has an industrial alliance to develop cars and trucks with Renault-Nissan, which owns a 3.1 per cent stake in Daimler.
Geely’s Chairman Li Shufu, who quietly built up the 9.7 per cent stake, is now expected to meet Daimler executives in Stuttgart on Monday, a source familiar with the matter said, and hopes to meet top German government officials in Berlin.
— Reuters
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