Daimler interested to buy a stake in the passenger-car unit of BAIC Group

Article by Christian A., on January 14, 2013

As part of Daimler’s bid to rise above its weakness in China (the world’s biggest auto market), it may make an investment in the passenger-car unit of its Chinese partner, BAIC Group, according to sources. Last Friday, a source said that when BAIC Motor is floated, Daimler may take a stake of 10 to 20%. It was also reported that the size of the stake depended on talks with its Chinese partner.

Last September, Xu Heyi, the chairman of state-controlled BAIC, informed Reuters that it hopes to list its passenger-car subsidiary, BAIC Motor, in 2013. The company is hoping to raise about 10 billion yuan ($1.6 billion). More sources said that BAIC Motor will be listed in Hong Kong in 2013, hitting a volume of at least $1 billion, while other sources warned that an initial public offering (IPO) may be put off until 2014.

They also claimed that the listing will be organized by Goldman Sachs and Morgan Stanley. It’s possible that a BAIC investment will help Daimler to get its struggling China business to recover. Daimler subsidiary Mercedes-Benz considers China to be its No. 3 market globally after Germany and the U.S., it still falls behind BMW and Audi in the country. Mercedes’ sluggish sales in China have caused it to fall to third place in the worldwide ranking. BMW is No. 1 while Audi is No. 2.

Topics: daimler, baic

If you liked the article, share on:

Comments

Login or Create new account to add a comment!

Recommended

Cadillac’s CT6 full-size prestige-luxury sedan is still somewhat new. It has been offered to the global auto market for two model years – 2016 and 2017. But for those who...
by - February 19, 2017
In many industries, it is the rivalries that make things exciting. In basketball for example, there is the well-known rivalry between the Los Angeles Lakers against the Boston Celtics. For...
by - February 19, 2017
Now on sale in several major markets around the world including Europe, the BMW 5 Series (G30) heralds the arrival of the new seventh generation and represents a whole new...
by - February 19, 2017
Just recently, it was speculated that a new Porsche Cayman GT4 RS is coming. There is no official confirmation yet from the German sports car maker, but the arrival of...
by - February 18, 2017
Will there be a BMW M4 CS? Apparently, there is a Club Sport version of the BMWM4 after it was sighted in California doing a shoot for a new commercial...
by - February 18, 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