Daimler puts foot on accelerator in China

  • PR would have suffered serious losses in 2013 polls if hudud was major issue, says DAP
    PR would have suffered serious losses in 2013 polls if hudud was major issue, says DAP

    Pakatan Rakyat would have suffered devastating setbacks in Perak, Pahang, Negri Sembilan and Melacca if it had made hudud a major issue in last year’s general election, DAP advisor Lim Kit Siang said. The Gelang Patah MP (pic), who had earlier said hudud was never a vote-winner for PAS in previous elections, gave an illustration of how PR... …

  • Court acquits PKR rep, rules 10-day notice in public assembly act ‘unconstitutional’
    Court acquits PKR rep, rules 10-day notice in public assembly act ‘unconstitutional’

    The Court of Appeal today struck out the charge against Selangor's deputy speaker Nik Nazmi Nik Ahmad who was charged under the Peaceful Assembly Act for failing to give police a 10-day notice for a rally last year. A three-man bench led by judge Datuk Mohamad Ariff bin Md Yusof also ruled in a unanimous decision today that Section 9 (1) of... …

  • Assembly law cannot criminalise public gatherings, court rules
    Assembly law cannot criminalise public gatherings, court rules

    PUTRAJAYA, April 25 ― The Court of Appeal today unanimously ruled it unconstitutional to criminalise spontaneous public assemblies in breach of the 10-day notice required under the Peaceful... …

  • Albukhary International University withdraws decision to cease operations – Bernama
    Albukhary International University withdraws decision to cease operations – Bernama

    The Albukhary International University (AiU) in Alor Setar, Kedah has withdrawn its decision to cease operations. Second Education Minister Datuk Seri Idris Jusoh said the ministry was informed of the matter by the management of AiU through a letter Wednesday. "With that decision, the matter is no longer an issue," he told reporters... …

  • Jalan Bukit Bintang stretch remains closed to traffic
    Jalan Bukit Bintang stretch remains closed to traffic

    The 500m stretch of Jalan Bukit Bintang (Jalan Tun Razak-bound) between Chulan Square and Menara Worldwide will remain closed to all traffic, said Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) today. At 10.42pm last night, a sinkhole appeared at the left lane of Jalan Bukit Bintang, said MRT Corp in a statement released this morning. The... …

  • Bible ban in Pahang hotels draws flak
    Bible ban in Pahang hotels draws flak

    Islamic authorities in Pahang have overstepped their jurisdiction by banning non-Muslim religious materials in hotels in the state, say political and religious leaders. The Pahang Islamic and Malay Customs Council's (Muip) recent prohibition is the first ever such ban to be issued in the country involving hotels, and has drawn strong criticism... …

German automaker Daimler unveiled plans Friday to boost its position in the fast-growing Chinese market by acquiring BAIC for 640 million euros, a 12-percent stake in the country's fifth-biggest car group.

Daimler -- which at the end of last year created a new position on its management board dedicated especially to China -- said in a statement it had decided to deepen its existing partnership with Beijing Automotive Group (BAIC) by buying a stake in its passenger car unit BAIC Motor.

BAIC is planning to float the subsidiary on the stock exchange and when it does so, Daimler would buy a stake of 12 percent, the German group said.

As part of the agreement, Daimler would receive two seats on the BAIC Motor's board of directors.

At the same time, the two sides would increase their stakes in existing joint ventures, they said.

BAIC's holding in the production joint venture Beijing Benz Automotive Company (BBAC) would rise to 51 percent from 50 percent, while Daimler's stake in the integrated sales joint venture Beijing Mercedes-Benz Sales Service would be increased to 51 percent.

Daimler and BAIC expect the deal -- which still has to be approved by the relevant authorities -- would be closed "by the end of this year or early next year."

A Daimler spokesman put the cost at 640 million euros ($875 million).

"Following our technical cooperation with BAIC Motor and the setup of our integrated sales company, we are now taking the next step in deepening our relationship even further," said Daimler chief executive Dieter Zetsche.

"Our investment is a strong sign of the increased level of trust and cooperation between our two companies and clearly emphasises the long-term commitment to a joint successful future of our two companies," he said.

BAIC chairman Xu Heyi said the partnership "has entered into its best phase ever, with further deepened cooperation in accordance with the mutual interests and development plans between both companies."

Daimler's acquisition of a 12-percent stake "will go a long way in accelerating the development of BAIC's self-owned brand in terms of capital, technology, management, and brand. At the same time, this will help Mercedes-Benz to boost its business performance in China," Xu said.

NordLB analyst Frank Schwope said Daimler has long been trailing rivals BMW and Audi, a unit of Volkswagen, in China, which is the world's most important market in terms of growth outlook.

In 2012, Daimler, which employs more than 2,000 people in China, sold around 210,000 of its Mercedes-Benz cars there. It aims to lift sales to 300,000 by 2015 with two thirds of those manufactured locally.

China is currently Daimler's third-biggest market after Germany and the United States, but is expected to become the German group's number one market by 2020.

According to the China Association of Automobile Manufacturers or CAAM, BAIC is China's fifth-biggest maker with sales of 1.69 million vehicles last year.

Daimler shares closed up 1.34 percent to 43.45 euros, outpacing the Frankfurt DAX which rose 0.74 percent to 7,833.39 points.

Talk of China's sovereign wealth fund taking a stake in Daimler resurfaced again Friday with the German weekly Wirtschaftswoche saying the CIC had built up a holding of nearly three percent.

A Daimler spokesman dismissed the report "speculation".

Two Chinese newspapers had reported last month that CIC planned to take a stake of 4 to 10 percent in Daimler,

But a source with knowledge of the matter dismissed the report, saying it was "not true".

Follow @YahooMalaysia on LINE for daily news updates.

Comments on Yahoo pages are subject to our link to Comments Guidelines. You are responsible for any content that you post. Yahoo is not responsible or liable in any way for comments posted by its users. Yahoo does not in any way endorse or support comments made by its users.

  • MH370 passenger’s partner tells of strange email from sacked Fox officer The Malaysian Insider
    MH370 passenger’s partner tells of strange email from sacked Fox officer

    The partner of an American passenger aboard the missing Malaysia Airlines flight MH370 has spoken about how a Fox executive who was recently sacked by the news station had contacted her offering to raise funds on her behalf. Sarah Bajc, whose partner Philip Wood is among the 239 people on board the missing plane, told the Sydney Morning Herald... …

  • My last moments with Pa: Ramkarpal Singh The Malaysian Insider
    My last moments with Pa: Ramkarpal Singh

    A week after the tragic crash that took the lives of veteran lawyer and politician Karpal Singh and his personal aide, Michael Cornelius, his son Ramkarpal recounts the final hours with his father that fateful day. This is his story, as told to V. Anbalagan, assistant news editor. “My parents (Karpal and Gurmit) had gone to Pantai Hospital... …

  • In Disney's shadow, homeless families struggle Associated Press
    In Disney's shadow, homeless families struggle

    KISSIMMEE, Fla. (AP) — When they moved from Georgia to the theme park playground of central Florida four years ago, Anthony and Candice Johnson found work at a barbecue restaurant and a 7-Eleven. Their combined salaries nevertheless fell short of what they needed to rent an apartment, so the couple and their two children have instead been hopping among cheap motel rooms along U.S. 192. …