Daimler and Beijing Automotive are officially going steady, with the German company set to take a 12-percent stake in the Chinese brand tomorrow. The two are already tied up in a Mercedes engine plant in Beijing, of which BAIC will increase its stake in, from 50 to 51 percent. Daimler will also get two seats on the Chinese company's board. BAIC may also gain the ability to produce cars on Mercedes-Benz platforms, according to Automotive News Europe.

The investment in BAIC comes ahead of that company's initial public offering, according to a report form Bloomberg, which indicates the deal will be inked tomorrow in the Chinese capital. According to the report, if the circumstances are right, BAIC may turn around and invest in the Germany company "soon."

It's not entirely clear just how much the 12-percent cut is costing Daimler, although it seems reasonable to assume that, as it's ahead of the IPO, the parent company of Mercedes is getting a bit of a bargain.

I'm reporting this comment as:

Reported comments and users are reviewed by Autoblog staff 24 hours a day, seven days a week to determine whether they violate Community Guideline. Accounts are penalized for Community Guidelines violations and serious or repeated violations can lead to account termination.

    • 1 Second Ago
  • 2016 Mercedes-Benz E-Class
    MSRP: $52,650 - $104,300
    2016 Mercedes-Benz C-Class
    MSRP: $38,950 - $73,250
    2016 Mercedes-Benz GLE-Class
    MSRP: $51,100 - $65,100
    2016 Mercedes-Benz GL-Class
    MSRP: $64,550 - $91,300
    2016 Mercedes-Benz Sprinter
    MSRP: $36,495 - $46,940
    Share This Photo X