Daimler welcomes investment by Chinese partner BAIC

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FILE – In this file photo dated Wednesday, April 3, 2019, a worker wipes a logo of a car at the Mercedes Benz automobile assembly plant outside Moscow, Russia. German automaker Daimler expects pretax profits this year to be significantly lower than 2018, after setting aside more money to tackle the fallout from its diesel emissions problems and an airbag recall.(AP Photo/Pavel Golovkin, FILE)

FRANKFURT, Germany (AP) — Automaker Daimler says its Chinese partner BAIC Group has taken a 5% equity stake, a move Daimler said reinforces the cooperation between the two companies.

Daimler, maker of Mercedes-Benz cars, said Tuesday that BAIC acquired the stake through a fully-owned subsidiary, Investment Global Co. Ltd.

Daimler and BAIC have worked in a strategic partnership since 2003 and in 2013 Daimler took a stake in BAIC Motor, a listed subsidiary of BAIC. Daimler currently holds 9.55% of BAIC Motor’s shares.

Daimler’s biggest shareholder is Chinese investor Li Shufu, chairman of carmaker Geely, with 9.7%. Kuwait’s Sovereign Savings Fund has 6.8%.

Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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