Li-Tec JV uncertain as part-owner Daimler seeks savings

Article by Anita Panait, on March 1, 2014

Daimler is looking for savings at its Li-Tec battery cooperation with Evonik Industries, causing uncertainty about the future of the joint venture, disclosed Evonik supervisory board member Michael Vassiliadis. "Evonik is unsettled because Daimler's not sure how it will proceed while technology is improving," Vassiliadis told Bloomberg in a recent interview.

"You'd have to ask Daimler what the future of Li-Tec is." Evonik chief executive Klaus Engel remarked in October that low demand for electric vehicles as well as the fast-growing supply has placed pressure on prices. He remarked that around a three-digit-million figure and a lot of extra risk would be required to keep up with the industry's rapid development, which has prompted Daimler to seek a buyer for its battery activities. Uncertainty on the joint venture in terms of costs and other partners is also causing difficulties, said Vassiliadis.

Daimler has been reviewing options for Li-Tec since June 2013, including bringing in a new partner. Daimler is "convinced" of Li-Tec's technological expertise, a Daimler spokesman said in response to Vassiliadis's comments on the joint venture.

Li-Tec, however, hasn't generated much interest among possible buyers. South Korean company LG Electronics making a symbolic EUR1 ($1.37) bid for the battery cell business, Manager Magazin reported in December. Evonik holds 50.1 percent of Li-Tec, while Daimler owns the rest. [source: Bloomberg]

If you liked the article, share on:

Comments

Recommended

Audi’s intention to bring out the Renn Sport Racing version of the Q5 was made clear when it unveiled the Audi SQ5 at the 2017 Detroit Motor Show early this...
by - July 22, 2017
Kia’s Sorento midsize sports utility vehicle is reaching its mid-cycle for the 2018 model year. Thus, its fans, enthusiasts and satisfied customers are expecting the Sorento to receive an update...
by - July 22, 2017
The Lotus Evora Sport 410 astonished the world after arriving as the more powerful and lighter edition of the already impressive Evora 400. Now, Lotus Cars is throwing in another...
by - July 22, 2017
The Europe-bound WRC hatch developed by Toyota and Gazoo Racing team will be limited to just 400 examples as reported by AutoCar this week. Otherwise known as Gazoo Racing Masters...
by - July 21, 2017
Even cops get excited when they’re assigned to drive the best cars in the market. In Austria, police officers drive around in a Porsche 911 Carrera while in Milan, authorities...
by - July 21, 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