Geely Buys $9 Billion Stake in Daimler

[Wolfgang]

Daimler and Geely could join forces to take on China's booming ride-hail market

2018 Denza 500
German auto giant Daimler and its Chinese shareholder Zhejiang Geely Holding Group could join forces to take on the booming ride-hail market in China, which is currently dominated by Didi Chuxing.

Citing people familiar with the matter, Bloomberg reported Tuesday that Daimler and Geely are considering the formation of a 50:50 joint venture that would offer ride-hailing and other mobility services.

One possibility is using cars from Daimler's Chinese electric car brand Denza for the venture, the people said.

Daimler is also parent to the Mercedes-Benz and Smart brands, and Geely is its single biggest shareholder with a with a 9.7-percent stake purchased in February. At the time, Geely boss Li Shufu said he wanted to join Daimler on reshaping of the automotive landscape toward one filled with electric and self-driving cars, as well as fending off new entrants in the industry like the tech and ride-hailing companies.

A new ride-hailing service could potentially be the first major cooperation between Daimler and Geely. Daimler is also working with Chinese tech giant Baidu on a self-driving system for Chinese roads so we could potentially see any new ride-hailing service eventually feature driverless cars.

Taking on Didi in China's ride-hailing market won't be easy. After a long battle, Uber in 2016 finally threw in the towel and sold its Chinese operations to Didi, which counts not only Uber but also Apple and Softbank as major investors.

Geely already has some experience. It currently offers a ride-hailing service called Caocao across 24 Chinese cities. Likewise, Daimler has experience with its MyTaxi service, which is a ride-hailing service offered in parts of Europe but relying on taxis. Daimler is also in the process of establishing a joint venture with the BMW Group to merge the two firms' respective mobility services.

Stay tuned.

Source: Motorauthority

 

[DjordjeC63]

Dont know if it was posted, but first Geely car was copy of E class, based on Audi 100

 

[Grosser]

Just when you think W210 can't get uglier this shows up...

 

[martinbo]

Performance derivatives were branded AMGeely.

 

[hoffmeister_fan]

Dont know if it was posted, but first Geely car was copy of E class, based on Audi 100

That's definitely an Audi-derived chassis. Look at that front overhang.

 

[KiwiRob]

"Meanwhile, Geely has built a portfolio of international brands as it seeks to create a company that will mimic the sprawling Volkswagen empire." Source: FT


FYI, Geely already owns / controls: Geely Cars, Volvo Cars, Volvo Trucks, Proton Holdings, Lotus Cars, London EV Company (makers of iconic London black cab), Terrafugia[/U...

Geely own about 8% of Volvo Group, makers of Volvo Trucks, they don't own them.

 

[KiwiRob]

Volvo aim to exclusively offer electrified cars from 2020. Mercedes will not sell them mild hybrid four and 6 cylinder engines.

No it isn't, Volvo have stated they have stopped developing diesel engines, all future Volvos from 2020 will either be pure electric or hybrids, they have not said they will abandon development of petrol engines. Volvo don't need Mercedes to help them develop hybrids, if anything it's probably mercedes who needs them. If you've driven a T8 engined Volvo you'll get why it's so much better than any current Mercedes hybrid.

 

[Wolfgang]

Daimler, Geely announce luxury car-sharing service
The maker of Mercedes cars will launch the joint venture with its biggest shareholder in China next year.

Daimler's backseat driver? Source: Reuters

Daimler and Geely will launch a luxury car-sharing service in selected Chinese cities next year, the firms have announced.

The maker of Mercedes vehicles and its biggest shareholder will both own 50 percent of the new service, which will be kitted out with Mercedes S-Class and E-Class limousines and V-Class vans. Daimler’s super-premium Maybach and Geely’s electric models may also join the fleet. The two partners will develop the software for the venture together. Handelsblatt had reported on an expected deal earlier this month.

Stefan Bratzel, director of the Center for Automotive Management, said the new venture marks an important first step for Daimler in mobility services in Asia after solid beginnings in Europe and the United States.

The company has 26 million customers across its Car2go, Moovel and Mytaxi services. German carmakers need beachheads in China, the largest auto market in the world, to counter technology groups like Didi Chuxing, Baidu, Tencent and Alibaba, said Mr. Bratzel.

But the partners must work quickly to launch their platform and win customers, he believes. Didi Chuxing books some 30 million trips a day in its car-sharing services. Breaking into a market with that kind of competition will be expensive.

Geely owner Li Shufu is the one pushing the venture. His is the largest auto group in private ownership in China, and includes Swedish carmaker Volvo. In February, he acquired nearly 10 percent of Daimler, and is keen to develop partnerships for the mobility world of the future.

The German company has to tread carefully, however, because of its longstanding partnership with Geely rival BAIC to build and market Mercedes vehicles in China.

Source: Handesblatt

 

[Centurion]

A deep relationship with Geely is unavoidable for Mercedes. China is a country where a joint venture of local partner is a requisite for success.

 

[Wolfgang]

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[CrunchSlaughtered]

Geely is eating the death meat first but soon it will aim at fresh meat.

 

[Rolf]

For economies of scale and production potential this is a very wise move by Mercedes, Geely could sell thousands of cheaper Smart look alikes in China.

 

[EnI]

Today we have announced that the next generation of smart cars will be developed in a joint venture by Geely and Daimler, and be built in China for the global market.

So, new gen of (all BEV) smarts will be produced in China exclusively. No more smarts Made in EU (Hambach France & Novo mesto, Slovenia). It makes sense. Or it doesn't?

And to add a bit of BMW AG news here ... Eg., BMW Group also signed a 50:50 joint-venture with Great Wall a while ago - “Spotlight Automotive Limited” - for the development and production of MINI & Great Wall electric vehicles in China.
But BMW are still committed to build MINIs (BEVs incl.) in Oxford, UK (capacity of 220k vehicles per year) and Born, Netherlands (VDL Nedcar factory - annual capacity between 150k and 200k vehicles; also assembling X1), and also eyeing Honda's plant in Swindon, UK (annual capacity up to 250k vehicles per year) for possible acquisition after Honda's production operations departure from UK after 2021 ... But it all depends how UK will handle its BREXIT affairs (still not looking good at the moment ...). Also BMW plans to open new FAAR-based vehicle €1 billion worth production facility (annual capacity of 150k units) in Hungary in 2021. Right these days the BMW plant in San Luis Petosi, Mexico is starting production (3er Sedan assembly; possibly next gen 2er coupe too) - with annual capacity of 150k vehicles. While BMW plant in Spartanburg, USA has just been extended to 450k vehicles per year capacity. Leipzig, Germany plant extension is under construction for opening in 2020 - increasing annual production by 100,000 units (250k to 350k). BMW Brilliance JV plant in Shenyang, China is planned for €3 billion worth "large-scale expansion of the existing production facility" in the next couple of years. BMW's assembly plant in Thailand is also planed to be expanded (5er, 7er, X5, possibly X7 too). So, production capacity extension galore for BMW Group in the next years - all the new lines are / will be universal (being able to assemble any drive type: ICE, MH, PH, BE).

 

[Wunderkind]

For economies of scale and production potential this is a very wise move by Mercedes, Geely could sell thousands of cheaper Smart look alikes in China.

I don't know why Geely is buying smart.

 

[tristatez28lt1]

 

[dalab]

So, new gen of (all BEV) smarts will be produced in China exclusively. No more smarts Made in EU (Hambach France & Novo mesto, Slovenia). It makes sense. Or it doesn't?

And to add a bit of BMW AG news here ... Eg., BMW Group also signed a 50:50 joint-venture with Great Wall a while ago - “Spotlight Automotive Limited” - for the development and product...

The fact that Geely has 9% of Daimler and 50% of Smart would mean that actually access to 59% of the profits (or lost), of Smart

Check, thanks to the JV. between BMW and Great Great Wall 50/50, BMW access to the royalties produced from whatever brand Great Wall uses to use the joint electric platforms, (then participating in the mass market), with a low-cost Chinese Great Wall car?, as well as GW , access to the 50% of the benefits produced by the Mini SE?
Or do they only share the cost of development and production and each one accesses the benefits produced by their own brand?

 

[Wolfgang]

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[Yaz]

So rumors are true, Smart is going all electric?

 

[Wolfgang]

^ Yes. Believe the last day to order a smart gasser was yesterday.

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[dalab]

I post it here to not open another thread of the same, should the mod`s rename this thread for something like "Daimler is increasingly a Chinese company"

autocar
Chinese car maker BAIC has acquired a 5% share in Mercedes’ parent company, Daimler, a move welcomed by new Daimler CEO Ola Kallenius.

The stakes helps secure BAIC’s investment in the Chinese Mercedes-Benz manufacturing company Beijing Benz Automotive, a joint venture between the two firms.

It was first reported earlier this year that BAIC was acquiring Daimler shares on the open market. Now it has amassed 5%, the Chinese company announced today. German takeover rules mean that any stake above 3% must be disclosed.
The stake comprises 2.48% of direct shareholdings and a right to acquire additional voting rights equal to 2.52% of Daimler share capital.

"BAIC and Daimler have been successfully cooperating for more than a decade and our partnership is built on trust and mutual benefits," said Heyi Xu, chairman of BAIC. "It has been our intention to strengthen our alliance with Daimler through an investment. This step reinforces our alignment with, and strong support for, Daimler's management and strategy.
"We see our joint partnership as an excellent example of Sino-German collaboration and a model for the cooperation between companies of our countries. We look forward to continuing our successful cooperation," he added.
In 2013, Daimler invested in BAIC Motor, the Hong Kong-listed subsidiary of BAIC, where the German brand is also represented on the board. Daimler now owns 9.55% of shares in BAIC Motor.
This move means that the two companies will be on more of an equal footing than previously.

Given Daimler and BAIC’s joint venture, which sold 485,000 vehicles in 2018, BAIC will also be reassured it now holds some power, as rival Chinese car maker Zhejiang Geely Holding Group, better known as Geely, built a 9.69% stake in Daimler last year. In doing so, it became the firm’s largest stakeholder.