Daimler Cuts Stake in Chinese Electric-Car Venture With BYD

Author of the article: Bloomberg News Christoph Rauwald By Christoph Rauwald (Bloomberg) — Daimler AG will slash its stake in the Denza electric-car joint venture with China’s BYD Auto Industry Co. following years of weak sales for the brand. BYD will own 90% of the business and Daimler 10% after an equity transfer the companies…
Daimler Cuts Stake in Chinese Electric-Car Venture With BYD

Author of the article:

Bloomberg News

Christoph Rauwald

By Christoph Rauwald

(Bloomberg) —

Daimler AG will slash its stake in the Denza electric-car joint venture with China’s BYD Auto Industry Co. following years of weak sales for the brand.

BYD will own 90% of the business and Daimler 10% after an equity transfer the companies plan to complete in mid-2022, the Mercedes-Benz maker said Friday. The 50-50 joint venture was started in March 2012. 

“Daimler and BYD remain dedicated to their successful long-term partnership,” Daimler said in a statement. The Denza brand will introduce new models next year and “seek further growth opportunities.”

Tepid demand for Denza cars and the venture’s weak profitability have been a concern at Daimler for years, even as sales for its Mercedes luxury vehicles continued to surge in China. Daimler and BYD established the brand a decade ago to tap growth in the Chinese new-energy vehicle market.

Daimler had folded the Smart minicar brand into a joint venture with Geely Holding in China and sold the unit’s French factory to Ineos Group. The moves are part of a strategy shift under Daimler Chief Executive Officer Ola Kallenius to focus on luxurious cars packed with sophisticated electronic gadgetry.

©2021 Bloomberg L.P.

Bloomberg.com

Financial Post Top Stories

Sign up to receive the daily top stories from the Financial Post, a division of Postmedia Network Inc.

By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300

Read More

Total
0
Shares
Leave a Reply

Your email address will not be published.

Related Posts
Wary of political fallout, France looks to limit power price surge
Read More

Wary of political fallout, France looks to limit power price surge

Author of the article: PARIS — The French government is working on further measures to limit the surge in electricity prices, the finance minister said on Friday, wary of the political fallout three months before a presidential election. “Look what’s going on in Kazakhstan, it’s quite indicative of what can happen when energy prices explode,…
Foo Fighters drummer Taylor Hawkins dies, aged 50
Read More

Foo Fighters drummer Taylor Hawkins dies, aged 50

Author of the article: Taylor Hawkins, the drummer of American rock band Foo Fighters, has died aged 50, the band announced late on Friday. The band did not give a cause of death. Variety reported that the band had been preparing to perform in the Colombian capital Bogota on Friday at the time of his…
Bond Traders Primed for Wild Swings With Inflation, War in Focus
Read More

Bond Traders Primed for Wild Swings With Inflation, War in Focus

Author of the article: Bloomberg News Michael MacKenzie (Bloomberg) — After a tumultuous week of big yield swings and heightened volatility in the U.S. Treasury market, investors are bracing for another hot inflation report, while the war in Ukraine increasingly casts a pall over Europe and the global economy. Russia’s Feb. 24 invasion of Ukraine…
German wholesale prices see record jump as raw material costs soar
Read More

German wholesale prices see record jump as raw material costs soar

Author of the article: BERLIN — German wholesale prices rose by 16.6% on the year in November, official data showed on Monday, recording their biggest annual rise since data collection for the measure began in 1962 and suggesting higher consumer prices may follow. The price measure is widely considered an indicator of future inflationary tendencies…