Beijing Hearts Benz: China Might Buy A Chunk Of Daimler

Bertel Schmitt
by Bertel Schmitt
Daimler’s Zetsche won’t have to worry explaining the T&E for his trip to the Shanghai Motor Show. He might come back with a big chunk of Chinese money. According to the German Handelsblatt, “Daimler is negotiating with the Chinese sovereign wealth fund about selling shares and doesn’t rule out a Chinese engagement in Stuttgart.” Zetsche put on his best poker face: “We have had talks in the past with possible investors in China, and the talks are still on-going.” Looks like there is more to it: On Tuesday, Zetsche will travel to Beijing to meet with representatives of the Chinese government. Asked whether he would also meet representatives of the Chinese government fund CIC, Zetsche gave a definitive “no comment.” If they buy, China will be in good company:Daimler’s cars are not just the conveyance of choice of leaders of state, governments also think that Daimler is a good investment. The government fund IPIC of Abu Dhabi just dropped €1.95 billion on Daimler and received 9.1 percent of their shares in return. Kuwait already owns 7.6 percent in Daimler and has been rumored to possibly want more.A few days ago, China Daily reported that “China’s $200 billion sovereign fund will consider investing in Europe in 2009, after avoiding the continent last year because of trade barriers.”“Europe has started to welcome investments” without attaching conditions, China Investment Corp’s Chairman Lou Jiwei said Saturday at the Boao Forum on southern China’s Hainan island.Beijing-based CIC, whose investments have included stakes in Blackstone Group LP and Morgan Stanley, didn’t invest “a single cent” in European companies or assets last year, because the continent had put up barriers to limit the activities of sovereign wealth funds, he said.The agency was founded to provide better returns for China’s foreign-currency reserves, the world’s largest at $1.95 trillion. The fund last year earned $10 billion from its investments, representing a 5 percent return, Radio Television Hong Kong reported on February 24, citing a source it didn’t identify.“There was rising protectionism against China last year, and the European Union had the worst limits,” Lou said. “They allowed us to invest in no more than 10 percent of a company’s stakes and required us to give up our voting power” in management, he said.“We couldn’t accept that because investments should be based on market practices,” Lou Jiwei said. “With the removal of these conditions, we will seriously consider making decisive and prudent investments overseas this year, including in Europe.”Daimler is no stranger to Beijing. Their BeijingBenz-DaimlerChrysler Automotive joint venture cranks out made-in-China C- and E-Class models. China is dying to get a long version of the E-Class so that the boss can stretch his legs in the back, but Zetsche didn’t want to give a date for the launch of the roomier Beijing Benz. Longer versions of the Audi A4, of the Passat, and even of the venerable Santana are all the rage in the Middle Kingdom. Instead of giving the Chinese a chance to stretch their legs, Zetsche will give them the cramps: Daimler’s [S]mart will come to China.
Bertel Schmitt
Bertel Schmitt

Bertel Schmitt comes back to journalism after taking a 35 year break in advertising and marketing. He ran and owned advertising agencies in Duesseldorf, Germany, and New York City. Volkswagen A.G. was Bertel's most important corporate account. Schmitt's advertising and marketing career touched many corners of the industry with a special focus on automotive products and services. Since 2004, he lives in Japan and China with his wife <a href="http://www.tomokoandbertel.com"> Tomoko </a>. Bertel Schmitt is a founding board member of the <a href="http://www.offshoresuperseries.com"> Offshore Super Series </a>, an American offshore powerboat racing organization. He is co-owner of the racing team Typhoon.

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  • Nudave Nudave on Apr 20, 2009

    Somehow I don't find this any more peculiar than the pop-up banner ads on TTAC for "Asian Girls for Love & Marriage."

  • Windswords Windswords on Apr 20, 2009

    "Perhaps they will take another run at acquiring another company or else diversify away from automotive." Oh great. Now Daimler can rape and pillage another company. I hope the Chinese just buy them.

  • 1995 SC At least you can still get one. There isn't much for Ford folks to be happy about nowadays, but the existence of the Mustang and the fact that the lessons from back in the 90s when Ford tried to kill it and replace it with the then flavor of the day seem to have been learned (the only lessons they seem to remember) are a win not only for Ford folks but for car people in general. One day my Super Coupe will pop its headgaskets (I know it will...I read it on the Internet). I hope I will still be physically up to dropping the supercharged Terminator Cobra motor into it. in all seriousness, The Mustang is a.win for car guys.
  • Lorenzo Heh. The major powers, military or economic, set up these regulators for the smaller countries - the big guys do what they want, and always have. Are the Chinese that unaware?
  • Lorenzo The original 4-Runner, by its very name, promised something different in the future. What happened?
  • Lorenzo At my age, excitement is dangerous. one thing to note: the older models being displayed are more stylish than their current versions, and the old Subaru Forester looks more utilitarian than the current version. I thought the annual model change was dead.
  • Lorenzo Well, it was never an off-roader, much less a military vehicle, so let the people with too much money play make believe.
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