Geely buys into Daimler

By Colin Windell

Geely continues to expand its horizons with the Chinese automaker now the biggest investor in Mercedes-Benz, adding that to its growing portfolio.

The purchase of almost 10% of Mercedes-Benz bumped up Geely shares on the Hong Kong stock exchange and Geely Chairman, Li Shifu said the deal is intended to gain co-operation in the development of electric cars.

Geely already owns Volvo, Proton and Lotus as well as the British black cab manufacturer, London Taxi Company.

Geely's 9,7% stake in the high profile German carmaker has raised some concerns the Chinese firm will seek access to technology and innovation in exchange for the deal.

However,  the German government said it saw "no need to act in terms of competition rules or foreign investment rules".

In a statement by Geely, Mr Li said he wanted to "accompany Daimler on its way to becoming the world's leading electro-mobility provider," and was looking for a long-term commitment.

Describing what he called a "strategic vision," he argued that "invaders from outside" the traditional car sector, meant firms needed to cooperate through partnerships and alliances.

Also over the weekend, Daimler announced a R21,8-million investment into a partnership with another Chinese auto firm, BAIC. The money will go into modernising a BAIC plant to build Mercedes cars including electric vehicles

BAIC is in the process of building an assembly plant in South Africa at Coega, near Port Elizabeth.