Chinese tycoon buys 10% of Daimler
The Chinese businessman who owns the Geely automotive group has acquired a US$9-billion stake in Daimler, the German maker of Mercedes-Benz cars and trucks. The investment by Li Shufu, which Daimler confirmed on Friday in a regulatory filing in Germany, represents 9.69% of the company.
Last year, Geely Holding bought a 51% stake in Lotus, the British sports car maker. It also owns the company that makes London’s well-known black taxi cabs. With Li’s backing, Volvo recently outlined plans to create a brand of upscale electric cars, called Polestar, that is intended to compete with Tesla.
In the Chinese market, Geely Auto has become a top-selling brand. It sold more than 1 million vehicles last year. Geely Holding has also started an automotive brand, Lynk & Co, aimed at wealthier buyers.
Ferdinand Dudenhoffer, a professor who runs an automotive research centre at the University of Duisburg-Essen, said many people in Germany were cautious about investments by Chinese companies. “They need China — however, they also fear it,” he said in an email. He added that Geely could give Daimler an important partner. “With Mr Li and Geely, Daimler has open access to the largest market of the world,” he said. Daimler and other automakers are scrambling to develop electric vehicles to comply with increasingly stringent emissions standards that will take effect in China and Europe in the coming years. Daimler is working on both electric cars and battery-powered trucks.
Chinese tycoon buys 10% of Daimler