Photo: Mercedes-Benz
It's not a secret anymore. China is on a mission to take over the auto industry. As alarmist as that may seem, the facts are out there. In 2018, the German public raised fears over a hostile takeover of the country's most-prized asset, Daimler AG, by the Chinese. The rumors were quickly brushed off by then Daimler CEO Dieter Zetsche.
On Wednesday, Ola Kaellenius, Mercedes-Benz CEO, ruled out the possibility of two major Chinese shareholders raising their stakes in the company and, as a result, creating a blocking minority, Reuters reported.
Both state-owned Beijing Automobile Group Co Ltd (BAIC) and Geely founder Eric Li (Li Shufu) each hold a 10% stake in the German automaker. In an interview with the CEO, German daily Handelsblatt posed a question of whether the company was worried the two major Chinese stakeholders had enough stakes to prevent other companies from buying or controlling it.
Kaellenius assured the daily that it was not the case and that Mercedes-Benz had a good and strong relationship with its investors.
Together, BAIC and Chinese billionaire Eric Li have a 20% share in Daimler, a huge stake in the company, a move that has caused quite a stir.
Daimler first publicly announced the Chinese BAIC Automotive Group stake increase last year in December and made a bold statement that the group's shareholding is only a reflection of their commitment to their joint manufacturing and development alliance in China.
Winfried Kretschmann, head of the German state, Baden-Wuerttemberg, where Mercedes-Benz is headquartered, in a joint interview with the CEO, dispelled the fears saying they will not allow that to happen.
As confident as the Germans seem, it's clear that Chinese firms are stretching their tentacles to iconic German companies and other global industry leaders.
Last month during the FT Future of Car 2022 Conference, Stellantis boss Carlos Tavares warned the industry about the looming raw materials shortage. He also predicted that if the sector evaded the deficit, there would be a significant dependence on western and Asian countries for the same.
Both state-owned Beijing Automobile Group Co Ltd (BAIC) and Geely founder Eric Li (Li Shufu) each hold a 10% stake in the German automaker. In an interview with the CEO, German daily Handelsblatt posed a question of whether the company was worried the two major Chinese stakeholders had enough stakes to prevent other companies from buying or controlling it.
Kaellenius assured the daily that it was not the case and that Mercedes-Benz had a good and strong relationship with its investors.
Together, BAIC and Chinese billionaire Eric Li have a 20% share in Daimler, a huge stake in the company, a move that has caused quite a stir.
Daimler first publicly announced the Chinese BAIC Automotive Group stake increase last year in December and made a bold statement that the group's shareholding is only a reflection of their commitment to their joint manufacturing and development alliance in China.
Winfried Kretschmann, head of the German state, Baden-Wuerttemberg, where Mercedes-Benz is headquartered, in a joint interview with the CEO, dispelled the fears saying they will not allow that to happen.
As confident as the Germans seem, it's clear that Chinese firms are stretching their tentacles to iconic German companies and other global industry leaders.
Last month during the FT Future of Car 2022 Conference, Stellantis boss Carlos Tavares warned the industry about the looming raw materials shortage. He also predicted that if the sector evaded the deficit, there would be a significant dependence on western and Asian countries for the same.
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