Daimler AG to invest in BAIC Motor for a twelve percent stake
STUTTGART, Germany and BEIJING, Feb. 1, 2013
STUTTGART, Germany andBEIJING, Feb. 1, 2013 /PRNewswire/ --
oJoint strategic move in advance and support of BAIC Motor's intention to
launch an initial public offering of its shares
oInvestment through the issuance of new shares
oDaimler first non-Chinese automotive company to take stake in Chinese OEM
oDaimler to receive two seats on the Board of Directors of BAIC Motor
Daimler AG and Beijing Automotive Group (BAIC) will significantly deepen their
already strong strategic partnership: according to a binding agreement signed
today between executives of the two companies, Daimler AG is going to invest
in BAIC Motor, the passenger car unit of BAIC Group, one of the leading
automotive companies in China. This important joint strategic move comes ahead
of an intention by BAIC Motor to launch an initial public offering (IPO) in
the future. Daimler's investment will take place through the issuance of new
shares corresponding to a twelve percent stake in BAIC Motor.
Daimler's Chairman of the Board of Management, Dr. Dieter Zetsche, Chief
Financial Officer Bodo Uebber, and Hubertus Troska, Daimler's new Board Member
for Greater China, met today at the Mercedes-Benz Museum in Stuttgart with
Chairman Xu Heyi, Deputy General Manager Zhang Xiyong, and CFO Ma Chuanqi of
BAIC. As part of this meeting, they signed the contract between the two
companies. Daimler's shareholding in BAIC Motor is subject to the approval by
the relevant authorities. A closing of the transaction is expected by the end
of this year or early next year.
The agreement includes that Daimler will receive two seats on the Board of
Directors of BAIC Motor. The two companies also agreed that BAIC will increase
its stake in the production joint venture Beijing Benz Automotive Company
(BBAC) by 1% to 51% and will thus be able to consolidate this joint venture
within BAIC ahead of its IPO. At the same time, Daimler will increase its
stake in the integrated sales joint venture Beijing Mercedes-Benz Sales
Service Co. by 1% to 51%.
Dr. Dieter Zetsche, Chairman of the Board of Management Daimler AG and Head of
Mercedes-Benz Cars: "Following our technical cooperation with BAIC Motor and
the setup of our integrated sales company, we are now taking the next step in
deepening our relationship even further. Our investment is a strong sign of
the increased level of trust and cooperation between our two companies and
clearly emphasizes the long-term commitment to a joint successful future of
our two companies. It is also significant so that both companies can actively
participate in the opportunities of the Chinese automotive market."
Xu Heyi, Chairman of BAIC: "The partnership between BAIC and Daimler has
entered into its best phase ever, with further deepened cooperation in
accordance with the mutual interests and development plans between both
companies. Daimler's investment in BAIC's stake will go a long way in
accelerating the development of BAIC's self-owned brand in terms of capital,
technology, management, and brand. At the same time, this will help
Mercedes-Benz to boost its business performance in China."
Bodo Uebber, Chief Financial Officer of Daimler commented: "Through this
strategic investment in BAIC Motor, we will be the first non-Chinese
manufacturer to take a stake in a Chinese OEM. It also gives us the
opportunity to be part of the growth of one of its major domestic
participants. At the same time, our decision demonstrates the full support of
our partner's intention to publicly list its shares in the future, further
strengthening BAIC Motor's competitive position."
Hubertus Troska, Daimler's Board Member responsible for China said: "BAIC is a
long-standing, strategic partner of Daimler in China. With today's signing, we
are bolstering this already strong relationship even further. I am very
excited to be a part of our joint activities going forward."
As one of China's largest automakers, BAIC Group sold over 1.5 million
vehicles in 2011. Daimler AG is one of the world's most successful automotive
companies. Both parties have already established a long-term strategic and
trustful partnership, including significant investments in the Chinese
automotive industry over the past years. Joint activities include BBAC, which
has been producing Mercedes-Benz passenger cars since 2006, Beijing Foton
Daimler Automotive Co., Ltd. (BFDA), which has been jointly manufacturing
Auman-branded medium- and heavy-duty trucks since mid-2012, and most recently,
the establishment of Beijing Mercedes-Benz Sales Service Co., Ltd. This
significant milestone means that all sales activities for imported and locally
produced Mercedes-Benz cars will now be combined under one roof.
Overview: Daimler in China
Daimler in China is based in Beijing and includes
Mercedes-Benz (China) Ltd, Mercedes-Benz Auto Finance Ltd, Daimler Northeast
Asia Parts Trading & Services Co., Ltd., the joint ventures Beijing Benz
Automotive Co., Ltd. (BBAC), Beijing Mercedes-Benz Sales Service Co. (BMBS),
Beijing Foton Daimler Automotive Co., Ltd. (BFDA), Fujian Benz Automotive
Corporation (FBAC) and Shenzhen BYD Daimler New Technology Co. Ltd., as well
as sales companies in Hong Kong, South Korea and Taiwan.
Local production of Mercedes-Benz cars began with the predecessor series of
the E-Class in the joint venture BBAC in 2006; the second C-Class series
followed in 2008. BBAC has been producing the current E-Class in a
long-wheelbase version tailored specifically for the demands of the Chinese
market since May 2010; the first locally produced GLK rolled off the
production line in Beijing in December 2011.
On the sales side, Mercedes-Benz Cars is represented in China with its
complete product portfolio; around 210,000 vehicles were sold in the year
2012. Approximately 50 new dealers will be added to the sales network of
already over 220 this year, making the brand increasingly present outside the
Tier 1 cities.
China is already the fifth-largest sales market for Mercedes-Benz trucks. With
a market share of more than 50% in the premium segment, Mercedes-Benz Trucks
lead the market above all in the heavy-duty segment. In addition, Daimler is
developing the volume segment of the world's biggest market for commercial
vehicles in a joint venture with Foton Motor, a Chinese truck manufacturer.
Since mid-2012, the jointly produced medium and heavy trucks of the Auman
brand have also been rolling off the production line in Beijing-Huairou.
In addition, Daimler has been producing Mercedes-Benz vans for the Chinese
market in the Fujian Benz Automotive Corporation joint venture since April
Daimler Financial Services has been providing automotive financing in China
through Mercedes-Benz Auto Finance China since 2009. And together with BYD,
Daimler has initiated the joint venture Shenzhen BYD Daimler New Technology
Co. Ltd to develop an electric vehicle for the Chinese market. This joint
venture was officially approved in March 2011.
Further information from Daimler is available at:
www.media.daimler.com and www.daimler.com
The figures in this document are preliminary and have neither been approved
yet by the Supervisory Board nor audited by the external auditor.
This document contains forward-looking statements that reflect our current
views about future events. The words "anticipate," "assume," "believe,"
"estimate," "expect," "intend," "may," "plan," "project," "should" and similar
expressions are used to identify forward-looking statements. These statements
are subject to many risks and uncertainties, including an adverse development
of global economic conditions, in particular a decline of demand in our most
important markets; a worsening of the sovereign-debt crisis in the euro zone;
a deterioration of our funding possibilities on the credit and financial
markets; events of force majeure including natural disasters, acts of
terrorism, political unrest, industrial accidents and their effects on our
sales, purchasing, production or financial services activities; changes in
currency exchange rates; a shift in consumer preference towards smaller, lower
margin vehicles; or a possible lack of acceptance of our products or services
which limits our ability to achieve prices as well as to adequately utilize
our production capacities; price increases in fuel or raw materials;
disruption of production due to shortages of materials, labor strikes, or
supplier insolvencies; a decline in resale prices of used vehicles; the
effective implementation of cost-reduction and efficiency-optimization
measures; the business outlook of companies in which we hold a significant
equity interest; the successful implementation of strategic cooperations and
joint ventures; changes in laws, regulations and government policies,
particularly those relating to vehicle emissions, fuel economy and safety; the
resolution of pending governmental investigations and the conclusion of
pending or threatened future legal proceedings; and other risks and
uncertainties, some of which we describe under the heading "Risk Report" in
Daimler's most recent Annual Report. If any of these risks and uncertainties
materialize, or if the assumptions underlying any of our forward-looking
statements prove incorrect, then our actual results may be materially
different from those we express or imply by such statements. We do not intend
or assume any obligation to update these forward looking statements. Any
forward-looking statement speaks only as of the date on which it is made.
Daimler AG is one of the world's most successful automotive companies. With
Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and
Daimler Financial Services, the Daimler Group is one of the biggest producers
of premium cars and the world's biggest manufacturer of commercial vehicles
with a global reach. Daimler Financial Services provides financing, leasing,
fleet management, insurance and innovative mobility services.The company's
founders, Gottlieb Daimler and Carl Benz, made history with the invention of
the automobile in the year 1886. As a pioneer of automotive engineering,
Daimler continues to shape the future of mobility today: The Group's focus is
on innovative and green technologies as well as on safe and superior
automobiles that appeal to and fascinate its customers. For many years now,
Daimler has been investing continually in the development of alternative drive
systems with the goal of making emission-free driving possible in the long
term. So in addition to vehicles with hybrid drive, Daimler now has the
broadest range of locally emission-free electric vehicles powered by batteries
and fuel cells. This is just one example of how Daimler willingly accepts the
challenge of meeting its responsibility towards society and the environment.
Daimler sells its vehicles and services in nearly all the countries of the
world and has production facilities on five continents. Its current brand
portfolio includes, in addition to the world's most valuable premium
automotive brand, Mercedes-Benz, the brands smart, Maybach, Freightliner,
Western Star, BharatBenz, Fuso, Setra and Thomas Built Buses. The company is
listed on the stock exchanges of Frankfurt and Stuttgart (stock exchange
symbol DAI). In 2011, the Group sold 2.1 million vehicles and employed a
workforce of more than 271,000 people; revenue totaled €106.5 billion and EBIT
amounted to €8.8 billion.
SOURCE Daimler Corporate Communications
Contact: Florian Martens, +49 711 17-35017; Arnd Minne, +49 711 17-99092; Han
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