NZ Truck & Driver News

 
Daimler happy….Volvo not so much!

Daimler happy….Volvo not so much!

NZ Truck & Driver News

 April 2018   
Chinese automotive kingpin Li Shufu – the chairman and major owner of giant Chinese carmaker Geely and a growing global industry superpower – is now Daimler's biggest single shareholder.

His 9.69% stake in Daimler AG is worth an estimated $US9billion.

Daimler says Li is "an especially knowledgeable Chinese entrepreneur with clear vision for the future…"

The company says it's pleased that it has won a potentially longterm shareholder who is convinced of Daimler's innovative strength, strategy and future potential.

Volvo AB, owner of Volvo Trucks, was understandably not as happy with the Daimler development: In December, Geely also paid $US3.9billion to become the single biggest shareholder in Volvo AB.

In the wake of the confirmation of Li's Daimler buy-in, Volvo AB moved to drop the boss of the Geely-owned Volvo Cars from its board – a direct consequence, it said, of the Geely owner taking his Daimler shareholding.

Its move was i...

Subscribers: Please LOGIN to read the full article.

Chinese automotive kingpin Li Shufu – the chairman and major owner of giant Chinese carmaker Geely and a growing global industry superpower – is now Daimler's biggest single shareholder.

His 9.69% stake in Daimler AG is worth an estimated $US9billion.

Daimler says Li is "an especially knowledgeable Chinese entrepreneur with clear vision for the future…"

The company says it's pleased that it has won a potentially longterm shareholder who is convinced of Daimler's innovative strength, strategy and future potential.

Volvo AB, owner of Volvo Trucks, was understandably not as happy with the Daimler development: In December, Geely also paid $US3.9billion to become the single biggest shareholder in Volvo AB.

In the wake of the confirmation of Li's Daimler buy-in, Volvo AB moved to drop the boss of the Geely-owned Volvo Cars from its board – a direct consequence, it said, of the Geely owner taking his Daimler shareholding.

Its move was interpreted by some European commentators as a sign of increasing pressure from the auto industry on Geely to reveal its global strategy following a spectacular buying spree within the industry.

A Chinese industry analyst said ominously of the Daimler buyup: "It remains to be seen how Geely will leverage the ownership to reach other deals."

Interestingly, just two days after the Li shareholding was confirmed by Daimler, it also announced that its JV with another Chinese carmaking giant, BAIC, is investing 1.5billion Euros in new production facilities in China to build premium Mercedes-Benz cars, including electric vehicles.


Search Articles

NZ Truck & Driver Magazine
Read Now