Chinese Car Company Geely Invests $9 Billion in Daimler
Nearly 10 percent of shares are now held by China’s biggest automaker.
China’s market for automobiles has exponentially grown over the past decade, and it looks like China’s own auto manufacturers are now taking a new investment step. According to a new report by CNBC, Zhejiang Geely Holding Group, has placed down a $9 billion dollar investment in Daimler in a step to have access to German technology and expand Geely’s foothold in the worldwide automotive marketplace.
Geely (who already owns Volvo) is one of China’s largest auto makers. But China’s market still enjoys the advanced tech from the long-established German and European car manufacturers. Geely will still develop their own products, but it wouldn’t be surprising to see Daimler-supplied gear in newer Chinese cars in the near future.
This isn’t surprising to those who’ve kept a steady eye on China’s rapidly growing economy. Mercedes-Benz products in China account for 600,000, making it MB’s largest market. That number nearly doubles that sold in the U.S.
It’s not clear just yet how Geely will influence Daimler’s product lineup, but they will surely focus on catering to the Chinese market in order to maximize units sold. However, that influence should be quite strong if implemented, as this investment now makes Geely the largest investor in the brand.
Demand for premium brands in China has increased, with long wheel-base versions of most cars catering to customer demand for more passenger space. The EV market is beginning to take a stronghold and Daimler has been making recent developments there.
Perhaps when cars from China are exported more prominently to the U.S., we will see a car with mostly Mercedes-made components. That’s not such a bad thing.
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