GERMAN carmaker Daimler AG has taken a 12 per cent stake in its Chinese partner Beijing Automotive Group in a move to expand its footprint in the fast-growing China auto market.
Beijing Automotive, known as BAIC, is one of China's largest carmakers and sold 1.7 million vehicles last year. Its decade-old joint venture with Daimler began producing Mercedes-Benz cars in 2006 and this year began making four and six-cylinder engines. It also produces Auman medium and heavy trucks.
As part of the new arrangement, BAIC will increase its stake in production joint venture Beijing Benz Automotive Corporation from 50 per cent to 51 per cent.
Daimler will increase its stake in their sales joint venture by the same amount to 51 per cent.
Around 210,000 Mercedes-Benz cars were sold in China last year.
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