Daimler may raise stake in BAIC venture, report says

Daimler AG likely will realize a long-pursued goal of becoming a majority shareholder of a passenger vehicle joint venture with BAIC Motor Co. later this year, according to a Chinese media report. 

Daimler has “largely completed negotiations with BAIC” on raising its stake in the partnership and the deal may happen “within this year”, Cailian Press, a Shanghai government-affiliated news agency, reported, citing sources close to the matter. 

Cailian Press didn’t reveal to what extent Daimler plans to raise its interest in the joint venture known as Beijing Benz Automotive Co.

Beijing Benz was established in 2005 in Beijing. It is 51 percent owned by BAIC, with the remaining 49 percent interest held by Daimler. 

Beijing Benz produces eight models for Mercedes-Benz: four gasoline sedans – the A-Class, C-Class and E-Class and AMG A 35; three gasoline crossovers – the GLA, GLB and GLC, and the EQC all-electric crossover.

In 2021, Mercedes-Benz delivered 758,863 locally produced and imported vehicles in China, a 2 percent dip. It was the No. 2 selling luxury brand in after BMW for the year.

Beginning Jan. 1, the Chinese government scrapped all restrictions on foreign automakers producing locally, including rules that capped foreign interest in joint ventures to 50 percent. 

In January, Stellantis announced it would increase its interest in a joint venture with GAC Motor Co. to 75 percent from 50 percent. 

BMW Group in February raised its stake in a partnership with Brilliance Automobile Holdings Group Co. to 75 percent from 50 percent previously.