7.30Beijing Auto to take over Fujian Daimler by Sept

Beijing Auto to take over Fujian Daimler by Sept

 

http://autonews.gasgoo.com/auto-news/1011531/Beijing-Auto-to-take-over-Fujia
n-Daimler-by-Sept.html

 

Shanghai, July 30 (Gasgoo.com) After it failed in the bid for GM's Opel
brand last week, Beijing Automotive Industry Holding Corp (BAIC) is focusing
on a deal to buy a 50% stake in Fujian Daimler Automotive from the Fujian
Motor Industry Group. The deal is expected to be finalized by September, the
21st Century Business Herald said today. 

 

In recent years, Beijing Auto has been trying to diversify its commercial
production and expand into the passenger vehicle market. The company has
produced passenger vehicles mainly through joint ventures. The fifth-largest
Chinese carmaker has never stopped its efforts to develop into a full-range
vehicle producer by M&A (mergers and acquisitions).

 

Beijing Auto is looking to replace Fujian Motor as Daimler's Chinese partner
in Fujian Daimler Automotive by taking over Fujian's 50% stake in the
commercial vehicle venture. The other stakeholders in this JV are Daimler
(34%) and Taiwan's China Motor (16%). Beijing Auto will restructure the
venture after the takeover deal is inked in September.

 

The Fujian-Daimler facility, which was established in June 2007 in Fuzhou,
provincial capital of Fujian, has been planned with annual output capacity
of 40,000 vehicles. Output of Vito and Viano models is scheduled to commence
later this year, while the Mercedes-Benz Sprinter production will start at
the plant in 2010.

 

Beijing Auto produces vehicles through four subsidiaries, including two
joint ventures (making passenger cars): Beiqi Foton, Beijing Automobile
Works (BAW), Beijing Benz-Daimler and Beijing Hyundai. The company has said
it will seek new opportunities to bid for or partner with other overseas
automakers.

 

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