Romance between BAIC and Daimler still untouched
- Source: Global Times
- [16:29 May 31 2010]
- Comments
Beijing Automotive Industry Holding Co., Ltd. (BAIC) denied rumors that the deal between the company and Daimler has been suspended, according to Beijing News, citing an anonymous source working at the Beijing automaker.
The source said negotiation with Daimler is still in progress.
On May 24, the Chinese newspaper Nanfang Daily reported that the deal had been suspended, and insiders at BAIC and Fujian Daimler, on the occasion didn't deny it, which birthed the rumor.
BAIC confirmed last year that it would sign a deal with Fujian Motor to take over 40 percent stake of Fujian Daimler. As reported, Fujian Motor will be left with 10 percent of its stakes at hand and pass the 40 percent segment to BAIC, with the rest 50 percent going to Daimler Light Vehicle (Hong Kong) Co., Ltd, a joint venture between Daimler Group and Taiwan China Auto Company.
The source emphasized that, acquiring Fujian Daimler is one of BAIC's development strategies, and the company will not easily step back on the deal.
Agencies and Shi Jierui contributed to this story
