Daimler and BAIC are planning to co-invest about €1.5bn to expand local production of Mercedes-Benz vehicles in China.
With $ 9 billion placed in Daimler, he singlehandedly becomes the largest stakeholder in the German Automaker, accounting for 9.69 percent of the company. Employing over 11,000 staff, the Daimler and BAIC venture builds C-Class, E-Class, GLA, and GLC vehicles.
With that, Li Shufu aims to be able to share and use technologies used in Daimler vehicles, from hardware to software.
The first attempt to acquire shares in Daimler Li Shufu has been made in November. Just to make sure that Zetsche's management team comes to talk with the desired attitude, Li followed up with a veiled threat that he wouldn't add to his stake "for the time being".
On Wednesday, a German parliamentary committee will question government officials on whether Geely has violated disclosure rules and whether loopholes in securities trading law need to be closed, the Stuttgarter Zeitung and Stuttgarter Nachrichten newspaper reported on Tuesday. As part of this new 1.5 million euro investment, a production facility currently operated solely by BAIC in Beijing's Shunyi district will be transferred to BBAC and modified to produce premium Mercedes-Benz models.
The listed autos unit of his empire, Geely Automobile Holdings Ltd, saw its shares rise 6.5 percent on Monday after the investment was announced. The company blamed intensifying competition in the local passenger vehicle market, as well as "the overall sluggish Korean vehicle market", which led to a decline in sales at Beijing Hyundai Motor. Showing full commitment to electric mobility in China, both partners will jointly establish a Research Cooperation in the field of Battery Safety and Fast-Charging.
The man behind an audacious swoop for almost 10 per cent of Daimler has bought himself an audience in Angela Merkel's chancellery today.
The move is the latest sign that the global auto industry is ratcheting up pressure on Geely, which owns Volvo Cars and has a 8.2 per cent stake in AB Volvo, to reveal its global strategy amid active asset buying around the world.
Analysts have speculated that Geely is looking for help with the development of electric-vehicle technology.
Germany is "an open economy that welcomes investments, as long as they happen in line with the market", Zypries said in an interview with business daily Handelsblatt.
Volvo owner Geely has no immediate plans to buy more into Mercedes-Benz parent Daimler after becoming the German brand's largest shareholder. Output will include electric vehicles, the joint announcement said. The Geely stake, worth an estimated $9 billion, should give the Chinese automotive giant more leverage when trying to work out cross-company tech arrangements with Daimler and its sub brands including Mercedes-Benz.