Geely Founder Li Shufu Is a New Shareholder at Daimler
Geely’s founder Li Shufu is a new shareholder of Daimler AG. The CEO and owner of Zhejiang Geely Holding Group and Geely Group has acquired 9.69 percent of Daimler AG’s shares. "I am particularly pleased to accompany Daimler on its way to becoming one of the world’s leading electro-mobility providers," Li Shufu explained. The Geely Group’s commitment to Daimler is accordingly long-term.
With his acquisition of the shares, Li Shufu now becomes Daimler AG’s largest single shareholder. Neither Geely Group nor any other company in the Zhejiang Geely Holding Group is currently planning to build up its shares in Daimler.
The focus is on digital services and electric mobility
“The competitors that challenge the global car industry in the 21st century technologically are not part of the automotive industry today. But challenges create opportunities. No current car industry player might win this battle against the invaders from outside without friends. To achieve and assert technological leadership, one has to adapt a new way of thinking in terms of sharing and united strength. My investment in Daimler reflects this vision,” said Li Shufu.
With revenue exceeding around 43 billion US dollars in 2017, the Zhejiang Geely Holding Group is China’s largest privately owned carmaker and one of the world’s leading providers of electric mobility. Major assets of the Group include leading Chinese carmaker Geely Automobile Holdings Ltd., Hangzhou (46 percent); Volvo Cars, Gothenburg, Sweden (100 percent); Lotus Motor Cars, Norfolk, UK (51 percent); Proton Cars, Malaysia (49.9 percent); and London Taxi, Coventry, UK (100 percent). Geely Group also owns Cao Cao (100 percent), one of China’s largest car-sharing providers.
Daimler expands production with Chinese partner BAIC
Shortly after Geely’s founder Li Shufu announced his stake in Daimler, the Stuttgart company, for its part, announced that it would invest billions in China. Together with its Chinese partner BAIC, Daimler intends to expand local production for its Mercedes-Benz brand through its joint venture Beijing Benz Automotive Co. (BBAC). Specifically, the company will invest around 1.5 billion euros in converting an existing BAIC plant in the Beijing district of Shunyi.
BBAC’s production capacity is being expanded to meet the expected market demand in China. By expanding its localisation measures, Daimler can respond better to increased market demand with local models that are specially tailored to the needs of Chinese customers; models will include electric vehicles from Mercedes-Benz’s EQ brand.