Beijing Rumors: BAIC And Benz?

There are rumors ricocheting around Beijing about a possible big tie-up between China's BAIC and Daimler. BAIC is Daimler's joint venture partner in China, where the joint venture handles Chinese production of the long version of the E-Class, the C-Class and the GLK. According to the rumor, BAIC will take an interest in Daimler, whereupon Daimler will make a bigger investment into its Chinese JV. Two weeks ago, we reported that China's sovereign wealth fund is zeroing in on buying a 4 to 10 percent  stake in Daimler.  The rumors say the deal might be bigger, but Chinese rumors are to be eaten with a big helping of salt MSG. Daimler needs a new investment partner after Abu Dhabi's sovereign wealth fund Aabar had sold its remaining 3.07 percent stake in Daimler. Mercedes could also use a lift of its fortunes in China.  Sales of the "Benzes" as they are called in China are dwarfed by the competition of Audi and BMW, which really hurts Stuttgart's pride. from The Truth About Cars http://www.thetruthaboutcars.com

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