Chinese Automaker Geely Shells Out $9 Billion For 10% Stake In Daimler AG

Now they Geely is part of the Benz family and will likely have access to parts and platforms, can we NOW have a new proper Lotus Esprit? Please?

MB must be in more financial trouble than apparent or may need the money to try to catchup in EV and hybrid. Not a good track record with Chrysler and Renault-Nissan.

"catch up"

How soon until the major new shareholder demands Daimler shave costs/maximize returns by moving production of cars or components from expensive jurisdictions (Deutschland) to cheaper cost jurisdictions like just guessing here but China? 10% buys lots of clout and nobody does cheaper better than China.

@QEW - Mercedes has actually been building passenger cars with local partner BAIC since 2005 and engines since 2013. In 2017 they announced they were going to build a battery factory. It will be making electric cars in China too as a result of these investments. This a regional production strategy to serve the different needs of regional markets.

— CANADIANCOMMENTS

I am well aware of that and do business with numerous auto manufacturers and OEM part conglomerates so I understand the ecosystem. What I was referring to was Daimlers big German factories as this is some of the most expensive labor and operational costs that could have a huge impact on the bottom line if relocated...

To stay in business I had to switch to Chinese suppliers and lowered my costs by over 75% for top quality finished parts cheaper than I can buy the raw materials for and before in-house machining costs. I don't know how they do it so well and so damn cheap. Long term we are screwed and our only savior will be automation and 3D printing but this requires cheap electricity which completely screws Ontario thanks to the Liberal assholes and the green energy blunder.

@QEW - Agreed. Making things in the EU is not the cheapest play. But at some point, as wages rise in China and the middle class grows I would think the cost of mfg goods produced would rise. But the tech is there. I know the bicycle business a bit and all the top brands make 1,000's of high-end bikes there. If they can hand build (sheet by tiny sheet) a TDF winning carbon fibre bicycle that is worth $15,000 CAD, they can do anything. The 21st Century will belong to Asia.

This could be an interesting mega-merger in the works

mainstream: Renault, Nissan, Mitsubishi
near-premium: Volvo
premium: Mercedes

Outside the box @MD. That is where the big ideas are. And this is one of them. Very possible. Just plug in Geely, Lotus, Proton into their respective slots and there you go.

The problem with Geely, Renault, Nissan, Proton, and Mitsubishi is overlap. Something would have to give and relegating Mitsubishi to pickups, trucks, and Land-Cruiser-type SUVs would make sense. Proton could go away as a brand to be replaced by Geely.

Volvo would really need to know its place and stop insisting it is a Mercedes equal.

@MD you on are fire today. Agreed.

Daimler’s market cap is only $90 billion ?

Here you go. From June 2017.

Toyota, $155.88 billion market cap, 10.1 million sales
Daimler, (Mercedes-Benz), $70.35 billion, 3 million sales
Volkswagen, $67.24 billion, 10.3 million sales
Tesla, $60.28 billion, 76,230 sales
BMW, $54.77 billion, 2.4 million sales
GM, $51.45 billion, 9.6 million sales
Ford, $44.65 billion, 6.7 million sales

@CANADIANCOMMENTS: Your numbers present a glaring anomaly when looking at the "Market Cap Per Vehicle Sold". Guess which one looks WAY out of whack? Sorted highest to lowest:

Tesla: $790,765 (33.7x higher than the next runner up!)
Mercedes: $23,450
BMW: $22,821
Toyota: $15,434
Ford: $6,664
VW: $6,528
GM: $5,369

The Tesla number looks especially crazy when we realize they've never made a quarterly profit[1].

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[1] Yes, I'm ignoring that one quarter Tesla showed a miniscule paper profit, due to "creative" accounting practices, frowned upon by the SEC.

The fox just got its nose under the hen house fence.

I agree and Mercedes is about to get its karma for raping Chrysler. Mercedes is screwed. Within 5 years Geely will own a controlling interest.