There are rumors ricocheting around Beijing about a possible big tie-up between China’s BAIC and Daimler. BAIC is Daimler’s joint venture partner in China, where the joint venture handles Chinese production of the long version of the E-Class, the C-Class and the GLK.
According to the rumor, BAIC will take an interest in Daimler, whereupon Daimler will make a bigger investment into its Chinese JV. Two weeks ago, we reported that China’s sovereign wealth fund is zeroing in on buying a 4 to 10 percent stake in Daimler. The rumors say the deal might be bigger, but Chinese rumors are to be eaten with a big helping of
Daimler needs a new investment partner after Abu Dhabi’s sovereign wealth fund Aabar had sold its remaining 3.07 percent stake in Daimler. Mercedes could also use a lift of its fortunes in China. Sales of the “Benzes” as they are called in China are dwarfed by the competition of Audi and BMW, which really hurts Stuttgart’s pride.