AUTONEWS

DO YOU KNOW GEELY? IS THE MAJOR MERCEDES SHAREHOLDER
When creating Mercedes-Benz in the 1920s, its founders are unlikely to imagine that it would eventually fall into the hands of a Chinese company. But that's exactly what happened. China's Geely has become the largest shareholder in Daimler, the owner of the German automaker, last Friday.Geely, which already owned Volvo and the London Taxi Company, invested $ 9 billion in the transaction, earning a 9.7% stake. The deal, however, was controversial.It has raised concerns in Germany because, critics say, China would be interested in the technological advances and innovations developed by the German company.The government said it would not prevent it from buying Daimler shares, but at the same time warned it would "keep an eye". "Germany is an open economy that welcomes investments," Economy Minister Brigitte Zypries said in an interview with the German newspaper Handelsblatt. However, this opening "should not be used as a gateway to favor the interests of industrial policies in other countries," he added.Another aspect that has generated some concern is that Europe is much more open to foreign capital than China.
In a parallel operation, Daimler announced that it would invest $ 1.9 billion in a new alliance with another Chinese automotive company called Baic to modernize its facilities and adapt them to build electric Mercedes.
The two companies, Daimler and Baic, are working together in the Chinese market, where foreign production is only allowed by a system of alliances with a local company.
Everything indicates that the auto industry is moving fast. Last week, German manufacturer BMW announced an agreement with China's Great Wall Motor to make electric cars in China, with the aim of selling them in the local Market.

BBC