Chinese wealth fund to purchase a stake in Daimler AG

Article by Christian A., on January 9, 2013

It’s possible that China's sovereign wealth fund will purchase a stake in Daimler AG, according to a China media outlet, the state-owned People's Daily newspaper. It reported that China Investment Corp., the investment vehicle in the country, is considering a plan to buy a stake in Daimler that ranges from 4% to 10%. No sources were cited by the article.

The China Investment Corp. hasn’t released a comment about this matter yet. In the past, Daimler CEO Dieter Zetsche has said that a Chinese investor is welcome. Company spokeswoman Silke Walters didn’t directly address the comment but said that generally, Daimler wants a balanced shareholder structure so it will “always welcome” any new investors. A source told Reuters that there was no merit to this report.

Reports about this potential investment coincide with moves by the Mercedes-Benz parent company to shake up its troubled Chinese operations. Last December, Mercedes-Benz sales in China fell by almost 19% year-on-year to 18,910 units, as the company faced challenges just to keep up with Audi and BMW. Mercedes sales languished but Audi sales in China surged by almost 30% last year to 405,838 units.

Audi experienced strong demand for the Audi Q5 crossover, which posted a 65% sales increase. Sales of the long-wheelbase A4 sedan increased by 19%. Meanwhile, deliveries of the redesigned long-wheelbase A6 sedan climbed by 17%.

When interviewed by German newspaper Boersen-Zeitung recently, Zetsche admitted that Mercedes-Benz had not been able to keep up with Audi and BMW. Mercedes is reorganizing its sales network in China, merging different entities for locally and imported cars into one company. In addition, Daimler appointed Hubertus Troska in a new board position that’s responsible just for the market in China.

Topics: daimler

If you liked the article, share on:

Comments

Recommended

One of the executives at Volkswagen tagged in the so-called Dieselgate scandal has pleaded not guilty to a list of allegations surrounding the carmaker’s actions to cheat emissions regulations in...
by - February 27, 2017
When the Crown De Luxe saloon was first released in 1972, it was at that time the most lavish Toyota model available to British customers. Both unusual and exclusive, one...
by - February 27, 2017
The ride-sharing fleet of sharing Lyft Inc. will soon include thousands of specially fitted self-driving Chevrolet Bolt electric vehicles, courtesy of General Motors. If plans push through, Lyft’s clients would...
by - February 27, 2017
J.D. Power has officially released the 2017 Vehicle Dependability Study, an annual list of the most dependable brands in the auto industry. Once again coming on top is Lexus, the...
by - February 26, 2017
Citroen revealed that its entry to the Chinese market is moving forward with the planned release of the new generation C5. While still on sale on this part of the...
by - February 26, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries