#Geely

Unlike German auto titans BMW Group and Volkswagen Group, Mercedes-Benz parent company Daimler didn’t have the stabilizing effect of a family or individual with a massive, long-term cache of company shares. That’s no longer the case, as Geely Group owner Li Shufu has announced his purchase of a 9.69 percent stake in the German automaker.

This makes Shufu Daimler’s largest single shareholder.

The Chinese auto tycoon, whose Zheijang Geely Holding Group manages car-producing Geely Group, already owns Volvo Cars and Lotus, and is a major shareholder in truck builder Volvo AB. Always on the hunt for opportunities, the near 10-percent stake in Germany’s largest luxury automaker should give Shufu the partnership he’s looking for.

Is a seemingly unstoppable Chinese automaker slowly amassing a significant ownership stake in Germany’s Daimler AG? That’s what sources tell Bloomberg.

According to the news outlet, sources claim Geely Auto Group, which owns the Volvo, Lotus, and the mysterious Lynk & Co. car brands, is steadily acquiring a $9.2 billion stake in the German giant. That would give the Chinese a near 10-percent stake in the maker of Mercedes-Benz vehicles.

Are we witnessing the birth of a new alliance?

Lotus is an iconic automaker but, unfortunately, it hasn’t been a profitable one for years.* China’s Geely, which purchased a 51-percent stake in the brand last year, hopes to change that by investing “millions” into its production facilities. With the last factory revamp happening in 2009 to prepare for the Evora, that’s welcome news for Lotus. It also means new models are on the way.

Chief executive Jean-Marc Gales, a man who clearly enjoys his company’s cars, recently said that two new performance vehicles will arrive in 2020 — followed by an (apparently mandatory) sport utility vehicle. While we’re not enthralled by Lotus entering into the already bloated premium crossover segment, we’re hoping it’s willing to provide something different. Gales mentioned the model entering development a little over a year ago, saying “no one makes a lightweight, good-handling SUV. It’s a niche, and it looks well positioned.”

Fresh-faced automotive brand Lynk & CO began selling its first vehicle in China about two months ago. But it has bigger aspirations than procuring a place in Asia’s largest market — it wants to achieve global domination through westerly expansion and is now preparing to take its first steps.

While the goal seems unrealistic for a fledgeling automaker producing only one model, the brand has friends in high places. Volvo Cars, which is also owned by Geely Automotive, may be tapped to assist Lynk in Europe by offering its factory in Belgium and opening up its servicing infrastructure. If so, that would set a precedent for a Volvo-based support network that could eventually extend to North America.

It seems like we’ve been hearing about it forever — that fateful day when China surpasses the United States by every single metric imaginable and forces everyone to drive its cars. While that premonition has already come to pass in some respects, there’s still no overtly Chinese automobiles milling around on North American roads.

However, manufacturers from The People’s Republic have been looking westward for a decade. I can recall BYD Auto, along with other Chinese firms, having a booth in the basement of the North American International Auto Show way back in 2008. They weren’t there because they had nothing better to do — they were there to size up the competition and let America know they were coming. Of course, nothing happens overnight and Chinese automakers have been a little busy converting their domestic market into the world’s largest. But the time for westward expansion is fast approaching.

There has been some gentle complaining among select individuals that Chinese ownership will somehow taint the purity of the Lotus brand — a strange accusation considering the brand was operating under the Malaysia-based Proton Holdings since 1997 long before being bought by Geely Automotive earlier this year.

Sure, it might not be the Lotus of yesterday but the company’s new Chinese overwatch has said it still has big plans for the brand. Based on its handling of London Taxi and Volvo, we haven’t been overly concerned. But we have been hoping the parent company would elaborate on what that might entail.

By nature, we’re skeptics. It’s in the job description.

Thus, while it’s hard not to fall in love with the idea of Volvo’s new 2020 Polestar 1 offspring — I mean, just look at it — we also know how hard it is to kickstart a new luxury brand, regardless of whether Polestar wants to sit far outside the luxury mainstream or right at the heart of the matter. We can’t help but wonder whether the Polestar 1 is not representative of the ideal luxury brand launch.

As doubters, as pessimists, as cynics, as preternatural killjoys, as wary realists, we have questions about this new upstart premium automotive entity. Many questions.

Polestar said goodbye to Volvo Cars over the internet this week. While we like what Polestar does, the social media posting is a slightly sanctimonious. The brand will undoubtedly continue to use Volvo cars as a base for all of its upcoming builds and persist under the same corporate umbrella. It would be a bit like AMG wishing Mercedes-Benz a fond farewell in 2005 and then continuing to use its vehicles.

They’re technically separate entities but both AMG and Polestar exist as a result of the core brand and operate under the watchful eye of a much larger company — Daimler for AMG and Geely for Polestar. The only difference is that the Swedish performance arm is, like Volvo, focusing on electrification for added power while the Germans continue with rip-roaring internal combustion powerplants without even a hint of EV adoption.

Just kidding. Mercedes-AMG’s director of vehicle development, Drummond Jacoy, already confirmed the brand has to “reinvent” itself when it comes to electric cars, promising mild-hybrid applications last Janurary.

First it was Geely. Then Dongfeng. Now add Guangzhou Automobile Group to the list of Chinese automakers that have denied interest in acquiring Fiat Chrysler Automobiles (FCA).

FCA has seemingly been seeking a dance partner for a merger or acquisition for a year or two now, and the company’s stock rose earlier this week when Automotive News reported that a “well-known Chinese automaker” had made an offer to acquire FCA. The company has a market value close to $20 billion. Automotive News reported that the offer was rejected for not being enough.

With the Evora getting on in years and Lotus Cars under new ownership thanks to China’s Geely, it’s just a matter of time before the swift little sports coupe is replaced with something fresh and exciting. That means it’s time for the automaker to roll out special editions of its old models. However, it could be argued the company’s low production volume makes every Lotus Evora special — thus making the new GT430 variant extra special, as its assembly tops off at 60 vehicles.

Like the Evora 400 and Sport 410, the GT’s numeric moniker denotes its horsepower rating of 430 claimed units. The manufacturer states the GT430 uses the same Toyota-sourced 3.5-liter supercharged V6, but with vastly improved cooling. While 20 prancing ponies doesn’t sound like a game changer, the upgraded Lotus is about 300 pounds lighter than the Evora 400 and 57 pounds less than the 410 — all due to a svelte suspension and plenty of carbon fiber.

Volvo has been pushing “non-traditional” powertrains for a while. The company, encouraged heavily by its Chinese owner, has already begun moving toward limiting engine options in the very near future while focusing heavily on electrification. In 2014, the brand said all of its cars would be offered with a plug-in hybrid variant to supplement purely gas-powered models. Now it’s taking things further, setting a definitive timeline for the shift and stating that every new model after 2019 will be a hybrid or purely battery-driven vehicle.

“This announcement marks the end of the solely combustion engine-powered car,” Volvo CEO Håkan Samuelsson explained in an official statement on Wednesday. “Volvo Cars has stated that it plans to have sold a total of 1 million electrified cars by 2025. When we said it we meant it. This is how we are going to do it.”

Iconic British sportscar manufacturer Lotus may find a portion of its future production shifted to China under the ownership of its new parent company, Geely. Chinese billionaire and Geely chairman Li Shufu confirmed the possibility of some assembly taking place outside the United Kingdom during a press conference following the signing of the deal.

While this could stir outrage in some traditionalists, the Chinese company hasn’t mucked up things with Volvo yet and appears willing to apply a similar hands-off approach to the management of Lotus Cars.

Despite being Volvo Cars’ official performance arm since 2015, Polestar has always felt like a separate entity. Its current offerings for the North American market are limited to amped up versions of the S60 and V60 — distinctive in personality and produced in extremely limited quantities. However, Volvo’s parent company Geely wants to make a change, converting Polestar into its own global performance brand focusing on, get this, electric cars.

Apparently, Geely wants Polestar’s future role to mimic Mercedes’ AMG by having it continue to produce modified Volvos while also honing in on exclusive models singularly fixated on performance. However, if many of those are intended to be EVs, questions must be raised as to how things might change at Volvo.

Unlike the majority of Chinese automakers looking to the West, Lynk & Co seemed well-poised to bring a physical product to America — even though it had a share-based business model and a distribution plan that seemed counterintuitive. However, Zhejiang Geely Holding Group has announced that it is delaying Lynk & Co’s product launch for Europe and the United States.

The reasoning behind the stall revolves around that unconventional distribution model, which initially involves online ordering and at-home deliveries. Zhejiang Geely now feels that Lynk needs more time to cultivate a company-owned dealership network.

SAIC Motor, China’s largest state-owned automotive manufacturer, is canceling its plans to export vehicles into North America. Likely fearful of the current administration’s trade proposals, SAIC is blaming President Donald Trump for its hesitation to enter the Western market.

Of course, the Chinese automaker isn’t ruling anything out entirely. Michael Yang, the executive director of SAIC’s international division, explained at the Shanghai motor show that the company might resume its plans for U.S. expansion once trade tensions ease between the two countries. As the Trump administration hasn’t exactly celebrated the idea of imported goods and foreign manufacturing, it could be a long wait. In the meantime, SAIC Motor will be focusing its efforts on the European market.