BAIC Motor Corp, Daimler's Chinese partner in Beijing Benz, took over 35 percent shares in Fujian Benz on Mar 14, and became the second largest shareholder in the premium vehicle maker in Southern China.

 

Fujian Motor Industry Group Co will hold 15 percent equity in Fujian Benz Automotive Co, after Daimler Vans Hong Kong Ltd's 50 percent and BAIC's 35 percent. 

 

Fujian Benz is a Sino-German joint venture established in 2007, and mainly engages in the design, production, sales and after-sale services of Mercedes-Benz brand passenger vehicles, commercial vehicles and related parts and components. Its major products include two luxury multi-purpose vehicles Mercedes-Benz Viano and Vito, and a large commercial vehicle Sprinter.

 

"Through investment in Fujian Benz, BAIC can extend further cooperation with the joint venture partners and draw the respective competitive edges from each other; thereby building an all-win, long-term and stable cooperation relationship, while at the same time enabling full strategic cooperation among the parties in the Mercedes-Benz brand," according to BAIC Motor's statement filed to Hong Kong Stock Exchange.

 

"The equity transaction will also enrich the product line of the Company, which together with the synergies on technology, talents and strategy, can assist the parties to further explore the market," said the statement.

 

BAIC Motor, Daimler AG and Daimler Greater China established Beijing Benz Automotive co in 2005. Its business includes research and development, engine and completed vehicle manufacturing, sales and after-sales services. Beijing Benz mainly produces luxury sedans such as Mercedes-Benz C-Class, E-Class, and sport utility vehicles GLA and GLC.