BMW3GT
Autobahn Adventurer
Li ig going to visit the Kanzleramt here in Germany the next week. Our government is pretty aware of buyouts of the chinese republic and they will probably strenghten this postition towards foreign investors. Trump did the same and hey, it's pretty right imo.
However it do agree with @EnI. I recently talked to a buddy of mine who works as a financial consultant at Goldman Sachs. They were in charge with that project. He says that Li is looking for a strong partner for his "crown jewel" Volvo. Neither Geely nor Volvo have a strong R&D budget while Daimler has one of the biggest budgets within the automotive industry plus the know-how to do so. Without long term investemnts in clean mobility, AI-tec, connectivity and new models you are pretty much shot. At some point however, Daimler could be responsible for Volvo Cars while Li gives them the money to do so. Li owns far to less stakes to have any sort of influence in decisions. But more than enough to ask Dr. Z for help ;-)
D
Deleted member 25
So is this the start of the end for Mercedes ?
EnI
Piston Pioneer
Hardly.
But I guess Li would want some cooperation deal (for Geely Cars, Volvo Cars & Trucks, Lotus Cars etc) with Daimler to make some synergies. Similar to Daimler - Renault-Nissan cooperation, I guess.
Mr. Mercedes
Premium
Conversely. I believe it is an acknowledgment of the strong market share and financial position that Daimler is currently in. And yes perhaps Geely will be after some synergies with Volvo, which will be no bad thing for Mercedes. Volvo is a far more suitable bed mate for Daimler than Chrysler ever was and probably even Renault/Nissan. And cooperation between two industry leaders in the fields of safety and autonomous driving tech could be a major USP boost to both companies.
Daimler is always at a risk of a takeover bid because it's share structure is so fragmented. I wonder if the German Government would ever step in in this instance? Following the Chrysler disaster the sharks were surely circling and it was imperative for MB to boost its share price and market share to ward off any unwanted takeover.
Until any kind of co-operation, alliance or partnership is announced then there is no mechanism for most of what you suggest to happen. This is fundamentally not the same as the Nissan-Renault alliance partnership, which started off with a mutual a smallish exchange of equity in companies, and a very clear roadmap of what it was to bring, and the CEO's of each company sitting in press conferences explaining the benefits.
Here's some PR from the time...
Renault-Nissan Alliance and Daimler AG announce wide-ranging strategic cooperation
BRUSSELS, Belgium --- The Renault-Nissan Alliance and Daimler AG today annouced a broad strategic cooperation that will enable both groups to already realize benefits quickly from a range of concrete projects as well as sharing of best practices. The two groups also announced an equity exchange that will give the Renault-Nissan Alliance a 3.1% stake in Daimler and Daimler a 3.1% in Renault and a 3.1% stake in Nissan.
According to Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and head of Mercedes-Benz Cars, "Daimler and the Renault-Nissan Alliance are combining common interests to form a promising foundation for a successful, strategically sound cooperation that is based on a number of very concrete and attractive project cooperations. Our skills complement each other very well. Right away, we are strengthening our competitiveness in the small and compact car segment and are reducing our CO2 footprint - both on a long-term basis. We know that we can make brand-typical products based on shared architectures. The individual brand identities will remain unaffected."
Carlos Ghosn, Chairman and CEO of the Renault-Nissan Alliance, said: "The Renault-Nissan Alliance knows how to work successfully in collaborative partnerships, and this experience is extremely valuable in today's and even more tomorrow's global auto industry. This agreement will extend our strategic collaboration and create lasting value for the Renault-Nissan Alliance and Daimler as we work on broadening and strengthening our product offering, efficiently utilizing all available resources and developing the innovative technologies required in the coming decade."
Highlights of the Cooperation
Following intensive and productive talks, specific projects have been agreed upon and will be implemented with immediate effect. Specifically:
New common architecture for small vehicles
The successor to the current smart fortwo, a new smart four-seater and the next-generation Renault Twingo will be engineered on the basis of a jointly developed architecture. All vehicles will clearly differ from each other in terms of product design. One main characteristic of the new architecture will be the unique rear wheel drive concept used by current smart vehicles.
The launches of the jointly developed models are planned for 2013 onwards. The smart plant in Hambach, France will be the production location for the two-seater versions, while the Renault plant in Novo Mesto, Slovenia will be the production location for the four-seater versions. Right from its market launch, the jointly developed future models will also be available with an electric drive.
Powertrains
The focus of the cooperation in the powertrain area is on the sharing of highly fuel-efficient, diesel and gasoline engines between the Renault-Nissan Alliance and Daimler.
The Renault-Nissan Alliance will provide 3 and 4 cylinder gasoline and diesel engines out of its portfolio to Daimler, which will then be adapted and modified to reflect Mercedes' characteristics. The result is a win-win situation for both sides: Daimler will be able to utilize Renault-Nissan Alliance engines and capture additional sales potential for Mercedes-Benz' future lineup of premium compact cars, while the Renault-Nissan Alliance will improve its capacity utilization.
Daimler will provide gasoline and diesel engines out of its current portfolio to Infiniti. This includes 4 and 6 cylinder gasoline and diesel engines. The result is a win-win situation for both sides: Infiniti will be able to utilize Daimler engines, while Daimler will improve its capacity utilization.
Daimler, Renault and Nissan will also cooperate on future gasoline and diesel engines. Final production decisions for newly, co-developed engines will be taken at a later time, seeking a production network that is well balanced, thus benefiting all sides.
The area of engine cooperation will be driven by a technical concept that ensures the preservation and clear distinctiveness of the individual respective brand and product identities, while at the same time providing a highly competitive cost structure. First, a high level of standardization of the non-brand-relevant components will provide substantial savings for both partners. Second, the use of separate, brand-specific technology packages will ensure that the requirements of the respective brands are met.
A key objective is to increase competitiveness of all partners through a substantial increase in volumes, leading to economies of scale and cost sharing in development.
Collaboration on light commercial vehicles
The companies have also agreed on a close cooperation in the light commercial vehicle segment. Mercedes-Benz Vans will expand its portfolio to offer an all-new entry-level, intended for commercial usage, from 2012 onwards. The technical basis of this van will come from Renault and will be produced at the Renault plant in Maubeuge, France. Both partners will benefit from higher unit sales, better capacity utilization, shared investment burden, resulting in a better overall cost basis.
In addition to cooperating on small commercial vehicles, selected powertrain components will also be shared to enlarge mid-size van product offering and sales volumes. This includes a small diesel engine and transmissions which Daimler will procure from Renault-Nissan for its mid-size van, the Mercedes-Benz Vito. This additional entry-level motorization will generate additional unit sales for Mercedes-Benz and optimized capacity utilization at Renault.
Equity Exchanges
This strategic cooperation is underscored through a one-time cross-shareholding structure which enables the three companies to exchange, benchmark and create synergies on the basis of a long-term mutually beneficial relationship. The overall construction of the deal is based on the principle of a 3.1/3.1/3.1 percentage cross-holding between Renault, Nissan and Daimler; it will be transacted through an exchange of shares:
Daimler will get 3.1% of Renault's newly issued shares
Daimler will get from Renault 3.1% of Nissan existing shares;
Renault will get 3.1% of Daimler shares
Renault has independently agreed to exchange 1.55% of Daimler with Nissan for 2% of Nissan shares;
Renault and Nissan will each hold 1.55 % of Daimler treasury shares.
*On April 6, the market capitalization of Renault, Nissan and Daimler were EUR 10.5 bn, EUR 29.7 bn and EUR 37.7 bn, respectively. A standstill and lock up has been agreed between the parties for the duration of the cooperation, up to a maximum period of five years.
Further opportunities for collaboration
It is the intention of both groups to create a long-term framework to work closely on future areas of cooperation between Renault, Nissan and Daimler. Each company will pursue future opportunities following the closing of the agreement on the strategic cooperation and the implementation of the first major cooperation projects. These include opportunities to be studied on shared modules and components between Infiniti and Mercedes-Benz vehicles, regional cooperation in the United States, China and Japan between Nissan, Infiniti and Daimler. In addition, opportunities to co-develop technologies relating to electric vehicles and batteries will be explored between Renault, Nissan and Daimler.
About the Renault-Nissan Alliance
Formed in 1999, the Renault-Nissan Alliance is the world's fourth largest automotive group, with sales of 6.1 million vehicles in 2009. The Alliance is the most successful and enduring partnership in the automotive industry, and a respected benchmark for industrial cooperation across all industries. Employing 350,000 people and with revenues of €86.5 billion in 2009, the Alliance is present in over 190 countries around the world. Comprised of five globally respected brands: Dacia, Infiniti, Nissan, Renault and Renault Samsung, the Alliance is managed between two distinct and separate companies (Renault SA and Nissan Motor Company Ltd.), each with their own stock market listings (Paris and Tokyo respectively), Board of Directors and governance systems. During the past 11 years, the Alliance has formed strategic ventures with major companies including Dong Feng in China, AvtoVAZ in Russia and Mahindra, Ashok Leyland and Bajaj Auto in India. In late 2010, the Alliance will launch the Nissan LEAF, the world's first affordable all-electric car for the mass-market. The Nissan LEAF is the first of at least eight different electric vehicles from the Alliance aimed at revolutionizing zero-emission mobility.
About Daimler
Daimler AG is one of the world's most successful automotive companies. With its divisions Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services, the Daimler Group is one of the biggest producers of premium cars and the world's biggest manufacturer of commercial vehicles with a global reach. Daimler Financial Services provides its customers with a full range of automotive financial services including financing, leasing, insurance and fleet management.
The company's founders, Gottlieb Daimler and Carl Benz, made history with the invention of the automobile in the year 1886. As an automotive pioneer, Daimler continues to shape the future of mobility. The Group applies innovative and green technologies to produce safe and superior vehicles which fascinate and delight its customers. With the development of alternative drive systems, Daimler is the only vehicle producer investing in hybrid drive, electric motors and fuel-cell systems, with the goal of achieving emission-free mobility in the long term. This is just one example of how Daimler willingly accepts the challenge of meeting its responsibility towards society and the environment.
Daimler sells its vehicles and services in nearly all the countries of the world and has production facilities on five continents. Its current brand portfolio includes, in addition to the world's most valuable automotive brand, Mercedes-Benz, the brands smart, Maybach, Freightliner, Western Star, Fuso, Setra, Orion and Thomas Built Buses. The company is listed on the stock exchanges of Frankfurt, New York and Stuttgart (stock exchange symbol DAI). In 2009, the Group sold 1.6 million vehicles and employed a workforce of more than 256,000 people; revenue totaled €78.9 billion and EBIT amounted minus €1.5 billion.
- Cooperation on the next-generation smart fortwo and Renault Twingo, including electric versions, as well as on expanding the smart and Twingo families
- Widespread powertrain sharing and co-development on future projects with applications across passenger cars and light commercial vehicles, specifically:
- The sharing and co-development of diesel and gasoline engines from the Renault-Nissan Alliance; to be used in the new smart and Renault Twingo and to be adapted and modified with Mercedes-Benz characteristics for its new generation of premium compact cars
- The sharing of gasoline and diesel engines coming from Daimler to Infiniti, the luxury division of Nissan Motor Company, and providing the opportunity for further collaboration
- The sharing of a Renault-Nissan Alliance diesel engine and transmission for the Mercedes-Benz Vito
- The sharing and co-development of diesel and gasoline engines from the Renault-Nissan Alliance; to be used in the new smart and Renault Twingo and to be adapted and modified with Mercedes-Benz characteristics for its new generation of premium compact cars
- Collaboration in the field of light commercial vehicles
- One-time cross-shareholding amounting to 3.1% of each partner's equity capital
- Additional synergies encompassing selective common purchasing opportunities, exchange of operational benchmarks and best practices to be shared across both groups
BRUSSELS, Belgium --- The Renault-Nissan Alliance and Daimler AG today annouced a broad strategic cooperation that will enable both groups to already realize benefits quickly from a range of concrete projects as well as sharing of best practices. The two groups also announced an equity exchange that will give the Renault-Nissan Alliance a 3.1% stake in Daimler and Daimler a 3.1% in Renault and a 3.1% stake in Nissan.
According to Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and head of Mercedes-Benz Cars, "Daimler and the Renault-Nissan Alliance are combining common interests to form a promising foundation for a successful, strategically sound cooperation that is based on a number of very concrete and attractive project cooperations. Our skills complement each other very well. Right away, we are strengthening our competitiveness in the small and compact car segment and are reducing our CO2 footprint - both on a long-term basis. We know that we can make brand-typical products based on shared architectures. The individual brand identities will remain unaffected."
Carlos Ghosn, Chairman and CEO of the Renault-Nissan Alliance, said: "The Renault-Nissan Alliance knows how to work successfully in collaborative partnerships, and this experience is extremely valuable in today's and even more tomorrow's global auto industry. This agreement will extend our strategic collaboration and create lasting value for the Renault-Nissan Alliance and Daimler as we work on broadening and strengthening our product offering, efficiently utilizing all available resources and developing the innovative technologies required in the coming decade."
Highlights of the Cooperation
Following intensive and productive talks, specific projects have been agreed upon and will be implemented with immediate effect. Specifically:
New common architecture for small vehicles
The successor to the current smart fortwo, a new smart four-seater and the next-generation Renault Twingo will be engineered on the basis of a jointly developed architecture. All vehicles will clearly differ from each other in terms of product design. One main characteristic of the new architecture will be the unique rear wheel drive concept used by current smart vehicles.
The launches of the jointly developed models are planned for 2013 onwards. The smart plant in Hambach, France will be the production location for the two-seater versions, while the Renault plant in Novo Mesto, Slovenia will be the production location for the four-seater versions. Right from its market launch, the jointly developed future models will also be available with an electric drive.
Powertrains
The focus of the cooperation in the powertrain area is on the sharing of highly fuel-efficient, diesel and gasoline engines between the Renault-Nissan Alliance and Daimler.
The Renault-Nissan Alliance will provide 3 and 4 cylinder gasoline and diesel engines out of its portfolio to Daimler, which will then be adapted and modified to reflect Mercedes' characteristics. The result is a win-win situation for both sides: Daimler will be able to utilize Renault-Nissan Alliance engines and capture additional sales potential for Mercedes-Benz' future lineup of premium compact cars, while the Renault-Nissan Alliance will improve its capacity utilization.
Daimler will provide gasoline and diesel engines out of its current portfolio to Infiniti. This includes 4 and 6 cylinder gasoline and diesel engines. The result is a win-win situation for both sides: Infiniti will be able to utilize Daimler engines, while Daimler will improve its capacity utilization.
Daimler, Renault and Nissan will also cooperate on future gasoline and diesel engines. Final production decisions for newly, co-developed engines will be taken at a later time, seeking a production network that is well balanced, thus benefiting all sides.
The area of engine cooperation will be driven by a technical concept that ensures the preservation and clear distinctiveness of the individual respective brand and product identities, while at the same time providing a highly competitive cost structure. First, a high level of standardization of the non-brand-relevant components will provide substantial savings for both partners. Second, the use of separate, brand-specific technology packages will ensure that the requirements of the respective brands are met.
A key objective is to increase competitiveness of all partners through a substantial increase in volumes, leading to economies of scale and cost sharing in development.
Collaboration on light commercial vehicles
The companies have also agreed on a close cooperation in the light commercial vehicle segment. Mercedes-Benz Vans will expand its portfolio to offer an all-new entry-level, intended for commercial usage, from 2012 onwards. The technical basis of this van will come from Renault and will be produced at the Renault plant in Maubeuge, France. Both partners will benefit from higher unit sales, better capacity utilization, shared investment burden, resulting in a better overall cost basis.
In addition to cooperating on small commercial vehicles, selected powertrain components will also be shared to enlarge mid-size van product offering and sales volumes. This includes a small diesel engine and transmissions which Daimler will procure from Renault-Nissan for its mid-size van, the Mercedes-Benz Vito. This additional entry-level motorization will generate additional unit sales for Mercedes-Benz and optimized capacity utilization at Renault.
Equity Exchanges
This strategic cooperation is underscored through a one-time cross-shareholding structure which enables the three companies to exchange, benchmark and create synergies on the basis of a long-term mutually beneficial relationship. The overall construction of the deal is based on the principle of a 3.1/3.1/3.1 percentage cross-holding between Renault, Nissan and Daimler; it will be transacted through an exchange of shares:
Daimler will get 3.1% of Renault's newly issued shares
Daimler will get from Renault 3.1% of Nissan existing shares;
Renault will get 3.1% of Daimler shares
Renault has independently agreed to exchange 1.55% of Daimler with Nissan for 2% of Nissan shares;
Renault and Nissan will each hold 1.55 % of Daimler treasury shares.
*On April 6, the market capitalization of Renault, Nissan and Daimler were EUR 10.5 bn, EUR 29.7 bn and EUR 37.7 bn, respectively. A standstill and lock up has been agreed between the parties for the duration of the cooperation, up to a maximum period of five years.
Further opportunities for collaboration
It is the intention of both groups to create a long-term framework to work closely on future areas of cooperation between Renault, Nissan and Daimler. Each company will pursue future opportunities following the closing of the agreement on the strategic cooperation and the implementation of the first major cooperation projects. These include opportunities to be studied on shared modules and components between Infiniti and Mercedes-Benz vehicles, regional cooperation in the United States, China and Japan between Nissan, Infiniti and Daimler. In addition, opportunities to co-develop technologies relating to electric vehicles and batteries will be explored between Renault, Nissan and Daimler.
About the Renault-Nissan Alliance
Formed in 1999, the Renault-Nissan Alliance is the world's fourth largest automotive group, with sales of 6.1 million vehicles in 2009. The Alliance is the most successful and enduring partnership in the automotive industry, and a respected benchmark for industrial cooperation across all industries. Employing 350,000 people and with revenues of €86.5 billion in 2009, the Alliance is present in over 190 countries around the world. Comprised of five globally respected brands: Dacia, Infiniti, Nissan, Renault and Renault Samsung, the Alliance is managed between two distinct and separate companies (Renault SA and Nissan Motor Company Ltd.), each with their own stock market listings (Paris and Tokyo respectively), Board of Directors and governance systems. During the past 11 years, the Alliance has formed strategic ventures with major companies including Dong Feng in China, AvtoVAZ in Russia and Mahindra, Ashok Leyland and Bajaj Auto in India. In late 2010, the Alliance will launch the Nissan LEAF, the world's first affordable all-electric car for the mass-market. The Nissan LEAF is the first of at least eight different electric vehicles from the Alliance aimed at revolutionizing zero-emission mobility.
About Daimler
Daimler AG is one of the world's most successful automotive companies. With its divisions Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and Daimler Financial Services, the Daimler Group is one of the biggest producers of premium cars and the world's biggest manufacturer of commercial vehicles with a global reach. Daimler Financial Services provides its customers with a full range of automotive financial services including financing, leasing, insurance and fleet management.
The company's founders, Gottlieb Daimler and Carl Benz, made history with the invention of the automobile in the year 1886. As an automotive pioneer, Daimler continues to shape the future of mobility. The Group applies innovative and green technologies to produce safe and superior vehicles which fascinate and delight its customers. With the development of alternative drive systems, Daimler is the only vehicle producer investing in hybrid drive, electric motors and fuel-cell systems, with the goal of achieving emission-free mobility in the long term. This is just one example of how Daimler willingly accepts the challenge of meeting its responsibility towards society and the environment.
Daimler sells its vehicles and services in nearly all the countries of the world and has production facilities on five continents. Its current brand portfolio includes, in addition to the world's most valuable automotive brand, Mercedes-Benz, the brands smart, Maybach, Freightliner, Western Star, Fuso, Setra, Orion and Thomas Built Buses. The company is listed on the stock exchanges of Frankfurt, New York and Stuttgart (stock exchange symbol DAI). In 2009, the Group sold 1.6 million vehicles and employed a workforce of more than 256,000 people; revenue totaled €78.9 billion and EBIT amounted minus €1.5 billion.
I'm not saying it can't/won't yield such things eventually, nor do I think that would be a bad thing if it did, but at the moment I'd say it's a very optimistic stand-point to ignore the simple fact that a big chunk of Daimler is now owned, in effect, by another company and it didn't really have much say in it. If it were BMW I'd be worried - but then the ownership structure isn't really comparable.
Robbie
Schwarzwald Sprinter
I said the same thing on the FT's website when the announcement was made.
Regarding future co-operation and the lack of any announcements: As the biggest shareholder in Daimler, it wouldn't be wise of Daimler to ignore Geely's intentions/preferences. Obviously this is something that will happen in the future. Frankly, Volvo is such an obvious addition to the Daimler portfolio. Volvo could really use the additional engineering capacity of Daimler; Geely has got Volvo to the stage now where it is making properly desirable cars, with a seriously rejuvenated brand with immense momentum.
In order to start to maximise value in the Volvo brand, they need to produce more cars and more models, and I expect that Daimler will be happy to share technology/components (such as drivetrains) with its largest shareholder. Many of us think a 4-cylinder engine in a car as good as the XC90 is a bit of a shame, and I don't think it will be too hard to engineer the 90's engine bay to accept the M256. Maybe even the older petrol M272 V6 and its hybrid version as per the pre-FL S500e. At the very least a home for the older OM642 3-litre V6 diesel.
I am excited about this. Volvo is far more of a cultural fit with Daimler than Renault/Nissan/Infiniti. Can you imagine the safety leadership in the industry that the two biggest pioneers would have if they pared their resources, or at least worked together on some projects.
And on what planet is that transaction taking place?
Mr. Mercedes
Premium
That's why I said its a possibility, not a given. It's still very early days.[/SPOILER]
Robbie
Schwarzwald Sprinter
Very much here on earth. What I meant was portfolio in the loose sense of the word, bringing Volvo into the Mercedes orbit, similar to what's happened with Aston Martin but on a much larger scale.
You could however in time see Daimler buying Volvo and through that transaction issuing more shares to Geely/Li Shufu. I would be quite surprised if this idea is not what he is thinking. You don't really spend E7.2bn on an investment and expect to sit back and wait for it to appreciate.
Think about it: there's massive economies of scale in sharing parts and platforms, similar cultures, close geography, less competition than between MB and BMW/Audi, no issues with a premium manufacturer working with a mass market player, as you have with Renault and had with Chrysler...
The two situations aren't similar at all. Aston Martin agreed to give Mercedes a slice of the company in return for engine and parts supply. This was announced publicly before hand. That does bring an Aston into some kind of orbit around Daimler, I'd agree.
In the case of Geely, they took a big slice of Daimler... as far as I know - and I'll happily be corrected - this was not part of any agreement, deal or partnership. If anything it brings Mercedes more into orbit around Geely than anything vice-versa.
Daimler are currently declining to comment, whereas Li has reportedly been open about wanting access to Daimler tech.
Daimler have also just announced a €2bn joint investment with Geely rival (and Daimlers Chinese partner), BIAC.
Even the Government said they were keeping an eye on it, and whilst they've said they're not going to do anything about it, it's been pointed out that if the Chinese want to buy into the mighty German car indsutry, Daimler is a relatively soft target (BMW has Quandt/Klatten, VW has the Porsche family and the German government itself).
Li Shufu is very politely attempting to force Daimler's hand on sharing their technology - I personally don't think that's a move Daimler invited... in fact they'd previously rejected offers from Li to buy into the company more formally.
I'm really not sure what part of that is giving people the idea that Daimler are keen on this.
I wouldn't rule it out - anything's possible, but I'm not sure it's any more likely now than it was before this move by Li - he clearly wants something, but if Daimler wanted to give it - why did he have to make his move on the open market?
True. Which is why Mercedes already has a lot of partnerships, stakes, and ownership with other companies already. Usually announced before hand, and instigated in partnership with, or by, Daimler... which is not whats happened here.
__
I'll re-iterate, I'm not saying a partnership is impossible, and I'm not predicting Doom for Daimler either - but I get the distinct impression people are really reaching hard to put a positive spin on this one.
Centurion
Apex Apex Predator
Isn't Volvo in direct competition with Mercedes? Granting Volvo access to engines would eradicate Mercedes' biggest competitive advantage.
Volvo would only be a viable acquisition fr Mercedes if they are permitted to reposition the brand to become a "cheaper" alternative e.g a VW rival.
Geely are not on Daimler's board and their shares don't grant rights to walk into Daimler offices.
CrunchSlaughtered
RPM Ruler
What China and Chinese companies are doing recently is to buy an access to high-tech technologies. With this they are saving a lot of time and they accelerate their march towards becoming an important player on the automotive field. Once they get near the top it would get extremely hard for any company (being MB, BMW or whatever) to compete them.
chonkoa
Aerodynamic Artisan
That I think is their strategy. It is what they have done in the past. And we are not alone in expressing those concerns
China's Geely raid on Daimler reignites German know-how fears
BERLIN/FRANKFURT (Reuters) - Automaker Geely’s purchase of a $9 billion stake in Mercedes maker Daimler rekindled fears in Germany on Monday of its highly-prized expertise falling into Chinese hands.
chonkoa
Aerodynamic Artisan
Just watch and see their modus operandi play out.
chonkoa
Aerodynamic Artisan
Germany 'watchful' of China Daimler deal
http://www.bbc.com/news/business-43194026
Germany says it will remain "watchful" of Chinese carmaker Geely after it became the biggest investor in Mercedes-Benz owner Daimler.
The German government warned the deal should not be used as a "gateway" for Chinese industrial policy interests.
Geely, which has bought a 9.7% stake, says it hopes to co-operate with the German car giant on electric cars.
The Chinese firm already fully-owns Sweden's Volvo and black cab maker London Taxi Company.
Geely's $9bn (£6.4bn) investment has raised some concerns that the Chinese firm will seek access to technology and innovation in exchange for the deal.
The German government said it would not block the investment, but Economy Minister Brigitte Zypries said it must "keep an especially watchful eye".
Germany is "an open economy that welcomes investments, as long as they happen in line with the market", she told the German newspaper Handelsblatt.
http://www.bbc.com/news/business-43194026
Germany says it will remain "watchful" of Chinese carmaker Geely after it became the biggest investor in Mercedes-Benz owner Daimler.
The German government warned the deal should not be used as a "gateway" for Chinese industrial policy interests.
Geely, which has bought a 9.7% stake, says it hopes to co-operate with the German car giant on electric cars.
The Chinese firm already fully-owns Sweden's Volvo and black cab maker London Taxi Company.
Geely's $9bn (£6.4bn) investment has raised some concerns that the Chinese firm will seek access to technology and innovation in exchange for the deal.
The German government said it would not block the investment, but Economy Minister Brigitte Zypries said it must "keep an especially watchful eye".
Germany is "an open economy that welcomes investments, as long as they happen in line with the market", she told the German newspaper Handelsblatt.
Centurion
Apex Apex Predator
haha. Geely might secretly already be approaching other shareholders about aquiring more stock.
It reminds me of when LMVH was sneakily trying to accumulate shares in Hermes before they were found out and told to back down.
No, but this does touch on what they can do - Li Shufu now has 9.69% of voting rights within Daimler, when making decisions with regards to the board itself he, as an individual, has the strongest say. Half of Daimlers supervisory board is voted for by shareholders. I don't know quite how Li Shufu could leverage it, but I'm sure it must be possible - he might not be able to directly take part in any decisions of the board, but he may well be able to affect board make-up or policy - if that is his wish.
edited to add: It will be interesting to see if is nominated as a shareholders representative on the board, that has been the case with Kuwait investment authority... though I don't think this can happen until 2020 from skim-reading the Daimler Investor stuff.
Robbie
Schwarzwald Sprinter
Certainly we agree Daimler did not invite this or welcome it. But now that it is fact, they have to take their new biggest shareholder seriously. Not a legal obligation, yes, but a common sense one. Whether working with Volvo is pushed on Daimler or not, the outcome will likely be the same. So yes whilst the Aston Martin deal was done willingly by Daimler, any deal with Geely/Volvo will probably happen anyway, UNLESS the German government puts a stop to it.
I am not putting a positive spin on it, I genuinely think it is a good option for Daimler. As you so rightly point out, the other German manufacturers have "protective" shareholders, Daimler doesn't.
What's interesting also is that Li Shufu has hedged his exposure to Daimler, so that tells me this is not a speculative purchase, he has a plan in place here.
Why do some people see this as so negative? Is it mistrust of the Chinese? I think they have been absolutely fantastic for Volvo, why would they be a problem for Daimler? Maybe I am naive...
Similar threads
Mercedes-Benz
Mercedes-Benz Group AG is headquartered in Stuttgart, Germany.
Established in 1926, Mercedes-Benz Group produces consumer luxury
vehicles and light commercial vehicles badged as Mercedes-Benz, Mercedes-AMG,
and Mercedes-Maybach.
Its origin lies in Daimler-Motoren-Gesellschaft's 1901 Mercedes
and Carl Benz's 1886 Benz Patent-Motorwagen, which is widely regarded
as the first internal combustion engine in a self-propelled automobile.
The slogan for the brand is "the best or nothing".
Official website: Mercedes-Benz (Global), Mercedes-Benz (USA)
Official website: Mercedes-Benz (Global), Mercedes-Benz (USA)
