Hassam Hameed-TDO-27.02.2018- China’s Geely company has become the biggest investor of Germany’s Damair. Daimler own Mercedes-Benz and Daimler trucks, whereas Geely is a Chinese automaker which owns Swedish automaker Volvo cars and black cab maker London Taxi company. Geely shares plummeted in Hong Kong after Geely signed a deal owning 10% share of Daimler.
This deal is worth more than $9billion, making Geely largest investor of Daimler. China is a big market, and many foreign automakers are eager to take a slice of the cake. To gain access to Chinese markets, partnership with a local company is necessary and many automakers are doing it.
As for Geely Michael Dunne, president of Dunne Automotive, a Hong Kong-based investment advisory firm focusing on automotive markets in Asia, said "While companies like Geely continue to develop their own products for the long-term, they see an opportunity to own some winners right now," he said. "Plus they get access to first-class German technology, which has a reputation in China that is second to none."
BMW has also announced its deal with Chinese Great wall motor to manufacture electric powered mini cars for Chinese local market.