Daimler, the German auto maker has agreed to buy 12% stake in Chinese car maker BAIC motor. This is a move that Daimler makes in order to compete better with BMW and Audi on the Chinese Luxury Market.
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Daimler will take 2 places on BAIC board of directors and will let the Chinese company have full control of local production of its two Mercedes Benz vehicles. BAIC is scheduled to have a public IPO sometime in the next 2 weeks.
Last year the German car maker started a restructuring program aim to change around slow car sales in China. Currently its cars placed only third after BMW and Volkswagen. The restructuring program including the appointment of a new director for China, the executive Hubertus Troska.
Mercedes- Benz reported an increase of less than 2% in 2012 compare to a year early while Audi and BMW posted 30% and 40% growth respectively,
Related Media: Mercedes- Benz 2013
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