Beijing Automotive Group Co. Ltd. (BAIC Group) becomes the latest investor in Daimler AG with a 5% stake following a strategic partnership that has been in place since 2003, leading to possible Mercedes-Benz expansion into China.

Since 2003, Daimler and BAIC have cooperated in the production, research and development, and sale of passenger cars, vans and trucks

Ola Källenius, chairman of the Board of Management of Daimler AG and head of Mercedes-Benz Cars, said: “We are very pleased that our long-standing partner BAIC is now a long-term investor in Daimler. This step reinforces our successful partnership and is a signal of trust in the strategy and future potential of our company. The Chinese market is and remains a crucial pillar of our success – not only for sales, but also for our product development and production.”

BAIC has acquired an equity interest of approximately 5% in Daimler AG through Investment Global Co. Ltd., a 100% subsidiary.

Since 2003, the two companies have cooperated in the production, research and development, and sale of passenger cars, vans and trucks. In 2013, Daimler acquired an equity interest in BAIC Motor, a listed subsidiary of BAIC, and currently holds 9.55% of its shares. Since 2018, Daimler has also held an interest of 3.01% in BAIC BluePark New Energy Technology Co. Ltd., a manufacturer of electric vehicles for China.