Daimler Wants To Discuss China Cooperation With Geely

Daimler has agreed to discuss the potential of cooperation in China with Geely chairman Li Shufu, who has recently become the German company’s largest shareholder.

During Daimler’s annual shareholders meeting in Berlin, the company’s CEO Dieter Zetsche said: “So far our talks with Li Shufu have been very positive. He wants his investment in Daimler to be a long-term one and he supports our successful strategy.”

“China is our most important market. In our future discussions of the automobile business in China, we will be able to include our largest shareholder,” Zetsche added, according to Autonews.

However, he repeated his condition that any cooperation would have to keep Daimler’s long-standing Chinese partner BAIC happy. Zetsche added that he’s “open for everything” that serves BAIC’s interests. “The bottom line is Li Shufu’s stakeholding offers many new chances”.

A delicate balance

Since Li announced that he had amassed a 9.7 percent stake in the German car maker, worth nearly $8.6 billion, Daimler has been trying to balance between the wishes of its new shareholder and its existing partners in China.

Li has said that he sees partners and alliances as key to defending the industry from new competitors. Daimler is currently enjoying record sales and earnings but is now facing intense spending due to the shift to electric vehicles.

  • TheBelltower

    This will either be a very good thing for MB, or it will be a downward spiral.

    • bxniels0

      I fear the latter.

  • scalextric

    No reason why it wouldn’t be positive deal. Geely is not a Ford or GM but has a strong track record as stakeholder.

    • You seems to miss the point, what it means is that Geely as a group could have tapped into Mercedes tech and research. And possibly transfer those tech to China which can be bad for long term.

  • CJKnox

    Go home Daimler youre drunk.

  • Tan Lee

    WHY IS THIS THE MAIN PAGE??

    • Bob

      Why not?