Daimler Buys Stake in Beijing Electric Vehicle Co.

On Thursday, German automobile company Daimler and BAIC subsidiary Beijing Electric Vehicle Co. said they are expanding their cooperation in the sector of New Energy Vehicle.

Daimler has become a shareholder in BJEV as it acquired a 3.93 percent stake in the company.

The two companies signed an agreement in June 2017 on further solidifying cooperation through investment for New Energy Vehicle in China, which included Daimler’s plan to become a shareholder in BJEV. This cooperation would help Daimler to further widen its understanding of Chinese consumers’ needs, particularly in the NEV sector.

“Electric mobility is one of the pillars of Daimler’s future mobility strategy,” said Hubertus Troska, Member of the Board of Management, Daimler AG, responsible for Greater China.

“The investment in BJEV marks yet another milestone in the strong cooperation between Daimler and BAIC for New Energy Vehicles in China, and it underlines our commitment to the further development of electric mobility in this country,” Troska said.

Chairman of BAIC Group, Xu Heyi, said in a statement that “BAIC Group and Daimler have long maintained a  deep, strategic partnership. New Energy Vehicles are one of BAIC Group’s core business areas, and Daimler’s investment in BJEV further expands our partnership, taking the cooperation between BAIC and Daimler into an entirely new stage of development.”

The move comes after rival Geely’s Chairman Li Shufu unveiled it had gained a 10 percent stake in Daimler, hoping to gain easier access to green and more energy efficient vehicle technology as a way to compete with competitors such as Uber.

The shares of the Mercedes-Benz maker were seen 1.52 percent lower at 66.82 euro on Thursday.

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