"We have to look at it very closely", Zypries told local newspaper Stuttgarter Zeitung, adding that the decision by the Chinese competitor to buy a 9.7 percent Daimler stake required explanation. Aside from the prestige that comes with a big stake in Mercedes-Benz's parent, it's likely that Li hopes his investment will give Geely leverage in those discussions.
Also on the weekend, BAIC Motor, Daimler's Chinese partner, said the two companies will invest a combined US$1.9 billion to build a new factory on the mainland, with the aim of building various Mercedes-Benz cars, including clean energy vehicles. In addition, Geely also owns LEVC, makes of the iconic London black cabs.
The first models from Mercedes-Benz's EQ brand to roll off production lines will include the EQC SUV, scheduled for release in 2019. Even so, shares in Geely Automobile rose on Monday by 6.5 percent. "The events of last Friday are the latest demonstrations of China's growing confidence and assertiveness, growing desire to impose its will on global affairs, and growing willingness to exploit the German OEMs' heavy reliance on Chinese profits", Bernstein Research said. It's thought that Geely may be looking to further its electric car strategy.
It is unclear how Geely will consolidate the tie-up with Daimler.
Automaker Daimler has a new largest shareholder - Geely Automotive chairman Li Shufu. BBAC in turn has formed an alliance with Renault-Nissan (which has a 3.1% stake in Daimler) to develop cars and trucks. Currently, China is the largest market in the world for electric vehicles. Today, he'll see Chancellor Angela Merkel's economic adviser, Lars-Hendrik Roeller, in Berlin, one of the people said. He spoke at several major conferences in Germany, where he spoke about his good intentions and desire to promote the prosperity of Europe.
The Daimler stake was purchased by an investment company headed by Mr. Li called Tenaclou3 Prospect Investment, according to the Daimler filing.
Some investors complained that Porsche and Schaeffler had crossed the boundaries of fair play, taking advantage of disclosure rules that were too loose and regulators that were too tentative. The German automaker said it "knows and appreciates Li Shufu as an especially knowledgeable Chinese entrepreneur" with a "clear vision for the future", with whom the company could constructively discuss change in the industry.