Does Daimler Own BAIC?

The partnership between Daimler AG and BAIC Group, one of China’s leading state-owned automobile producers, has been highly essential in the worldwide automotive industry. Although Daimler is often assumed to have an interest in BAIC, their relationship is more complex.

The Cross-Shareholding Agreement

Daimler and BAIC have engaged in a cross-shareholding agreement. It means that Daimler has shares in BAIC Motor Company which is listed on the Hong Kong Stock Exchange (HKEX) while BAIC also holds some shares of Daimler AG. Currently, Daimler owns approximately 12% stake in BAIC Motor Company and on the other hand, BAIC holds about 9.9% shares of Daimler AG.

The Strategic Collaboration

It is a business union aimed at attaining a competitive edge through cooperation in which each company makes use of the other’s best features. This also involves the joint development of electric vehicles by both manufacturers as well as expanding production capacity within China’s borders. Instead of indicating who is the owner here, it talks more about goals such as bilateral growth plans for a company.

The Impact on the World Auto Industry

The collaboration between Daimler and BAIC has had a significant impact on the automotive market, particularly in China. China has seen new models of Mercedes-Benz being introduced into its market causing growth in the luxury cars segment. Moreover, Daimler’s collaboration with BAIC will play a major role in shaping its future electric vehicle strategies since this area is of paramount importance for the whole automotive industry.

The Future Outlook

In future years the relations between Daimler and BAIC are likely to develop even further. With both auto companies aiming at capitalizing on the opportunities offered by advanced technological trends such as electric and autonomous cars as well as moving towards this direction together, their partnership may deepen even further.

In summary, while Daimler does hold a substantial interest in BAIC Motor, this does not mean that it owns BAIC in full. Partnership between two firms can best describe their status and what it entails for future goals.