Daimler, BAIC to invest $2 billion in China

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