Daimler shares shares in Beiqi to promote the listing of BAIC shares


The day before yesterday, Beijing Automotive Group and Germany's Daimler signed a comprehensive strategic cooperation letter of exchange. Daimler will take a stake in Beiqi and the two parties will also reorganize the joint venture Beiqi Mercedes-Benz. This will promote the listing of Beiqi. So far, more than two years of "Northern Wear" dust landing, becoming a comprehensive Chinese and foreign automotive cooperation projects.

Daimler invests in a 12% stake in Beiqi Co., Ltd., a self-owned passenger vehicle segment of BAIC Group, to provide capital and technical support for BAIC's own brand business development. The two parties carried out the equity reorganization of the joint venture company Beijing Benz. After the reorganization, the shareholding of Beiqi Co., Ltd. increased to 51% and the consolidation of Beijing Benz’s financial statements was realized. At the same time, the shareholding ratio of Daimler's sales joint venture company Beijing Mercedes-Benz Sales Service Co., Ltd. increased to 51%.

The strategic cooperation between BAIC and Daimler covers different aspects of capital, technology and business, including Daimler’s provision of vehicle platforms and technologies to BAIC Passenger Vehicles, establishment of a professional service platform, and integration of existing Beijing Benz sales service management functions. This strategic cooperation will enable BAIC and Daimler to form a closer body of interest. BAIC will develop full-scale support for Daimler’s own-brand passenger vehicles, and Daimler’s development in China will also be more stable and deeper.

Daimler’s shareholding will also promote the listing of BAIC shares. After integrating into Beijing Benz assets and the independent brand has been fully supported by Daimler, BAIC will increase its own investment value and enhance the competitiveness of its own brand projects, which will support the stock price performance after listing.

Xu Heyi, chairman of BAIC Group, said earlier that the Beidaihe plan will fully promote Beiqi's listing plan after its approval. Basically, it will be able to form a plate of nearly 100 billion yuan by 2015. If Beidaihe is fully completed, at the end of the “Thirteenth Five-Year Plan”, only the Mercedes-Benz manufacturing sector will form a scale of 300 billion yuan, and the achievement of the “Twelfth Five-Year Plan” will quadruple. At the same time, the in-depth cooperation with Daimler will further lay the foundation of Beiqi's own brand passenger car. Beiqi plans to achieve 5 million vehicle sales by 2020, including more than 50% of its own brands, entering the top 12 of the world's automotive industry, and entering the world's top 500 brands.

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