2018-02-23 22:48
Geely, the Chinese company behind Volvo, has taken a $9 billion (£6.4 billion) stake in Mercedes-Benz owner Daimler. As a result, Geely is now Daimler’s largest shareholder with control of just under 10% of the huge German car manufacturer.
Geely’s intentions had already been signalled by reports from the financial community that the firm was building its shareholding in Daimler. Now the move has been confirmed in a report to the markets by Daimler itself in which it states that it welcomes another major investor.
The Chinese firm, owned by billionaire Li Shufu already owns Volvo and Lotus as well as Polestar, the performance electric car brand recently split from Volvo, and Lynk & Co, another EV marque, targeting younger buyers. Other automotive brands on its books include the London Electric Vehicle Company, manufacturer of the new London Taxi and flying car firm Terrafugia.
The 9.69% stake in Daimler taken by Geely is said to signal its desire for technological cooperation, particularly in the electric vehicle field as well as the kind of economies of scale enjoyed by the VW Group brands. Mercedes-Benz has already stated its aim of launching 10 different electric vehicles by 2022 under its new EQ brand and is widely thought to be a leader in terms of battery technology and electric car design. On the flip side, it could also open a new path into the Chinese market for Daimler and Mercedes-Benz.
What do you think of Geely's growing influence in the global car market? Let us know in the comments...
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