Daimler continues its love story with China. Local automaker BAIC Motor Corp. plans to take a considerable stake in Mercedes-Benz Leasing.
The Chinese firm is already running a successful partnership with Daimler, so becoming an active participant in the above stated Daimler China leasing firm should only deepen this relationship.
Beijing Automotive Group (BAIC) and its BAIC Motor passenger car unit division are both fully owned by the Chinese state. Already listed at the Hong Kong stock market exchange, the two companies are planning a capital increase meant to fuel the cash reserves needed to complete the deal with Daimler, set to be completed at the end of the second or the start of the third quarter.
One last step sits between the interesting wedding between BAIC Motor and Mercedes-Benz Leasing China. The approval of the local authorities, imperative in such deals. There shouldn’t be any problems, though, considering that BAIC is actually state-owned and Daimler also holds a 12 percent stake in the Chinese company.
One in four Daimler vehicles in China leased or financed via a Daimler loan in 2014. Established in 2012, Mercedes-Benz Leasing was the first car brand in China to lease vehicles to both individuals and businesses.