Stuttgart - Chinese state-owned car company BAIC has purchased a 5 percent stake in Mercedes parent company Daimler, the German company announced on Tuesday.
This will make BAIC the third-biggest shareholder in Daimler, after Geely and Kuwait’s sovereign wealth fund.
BAIC is also South Africa’s newest vehicle assembler, having commenced SKD (semi-knocked-down) assembly of the X25 compact crossover at its Coega plant last year ahead of full-scale production likely commencing in late 2019.
Daimler has owned a 10 percent stake in BAIC since 2003, and the two are production and R&D partners in the Chinese market.
“We are very pleased that our long-standing partner BAIC is now a long-term investor in Daimler,” said Mercedes boss Ola Källenius.