July 23, 2019 11:30 AM, EDT

Daimler AG Sells 5% Stake to BAIC Group

Ola KälleniusOla Källenius, Daimler chairman and head of Mercedes-Benz Cars, speaks at the North American International Auto Show on Jan. 12, 2015, in Detroit. (Associated Press/Tony Ding)

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A day ahead of its second-quarter earnings release, Daimler AG July 23 announced Beijing Automotive Group Co. Ltd., had acquired a 5% stake in the company.

The cost of the transaction was not immediately disclosed.

BAIC Group logo

Daimler and BAIC have had a strategic partnership since 2003, and the two companies have cooperated in the production, research and development and sale of passenger cars, vans and trucks, according to the Stuttgart, Germany-based company.

“This step reinforces our successful partnership and is a signal of trust in the strategy and future potential of our company. The Chinese market is and remains a crucial pillar of our success — not only for sales, but also for our product development and production,” Ola Källenius, Daimler chairman and head of Mercedes-Benz Cars, said in a company release.

In 2013, Daimler acquired an equity interest in BAIC Motor, a subsidiary of BAIC, and holds 9.5% of its shares. Since 2018, Daimler has also held an interest of 3% in BAIC BluePark New Energy Technology Co. a manufacturer of electric vehicles for China. — Transport Topics