BAIC Group and Daimler AG signed an agreement last week to amend the management terms of their Beijing Benz joint venture, Xinhua reported today. According to the terms of the agreement, which was signed in Stuttgart on February 1, BAIC’s stake in the JV will increase from 50 percent to 51 percent.

In another clause of the agreement, both sides agreed that Daimler will maintain a 12 percent share in BAIC Motor after the latter begins trading on the Hong Kong Stock Exchange later this year. Daimler will also send two chairmen to BAIC to help aid in the development of the manufacturer’s own brand program.

The BAIC-Daimler agreement is one of the first major events in the Chinese automotive industry this year, and is one of the few examples of a Chinese manufacturer taking the reins of an automobile JV enterprise.


By EVS

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