Chinese firm takes 5% share of Germany's Daimler

By Gokhan Ergocun

ISTANBUL (AA) - The Beijing Automotive (BAIC) Group has purchased around 5% of shares of the German automotive giant Daimler AG, Daimler announced on Tuesday.

“This step reinforces our successful partnership and is a signal of trust in the strategy and future potential of our company,” Ola Kallenius, the chairman of board of management of Daimler AG, said in a press release.

The German company's statement said that in 2013 Daimler acquired an equity interest in BAIC Motor and currently holds 9.55% of its shares.

Kallenius, who is also head of Mercedes-Benz Cars, said: "The Chinese market is and remains a crucial pillar of our success -- not only for sales, but also for our product development and production."

"Daimler and BAIC are linked in a long-standing strategic partnership that has existed since 2003," the statement said.

Daimler AG, established in 1998, is the owner of automotive brands such as Mercedes, Setra, Maybach, and Smart.

The Chinese state-owned BAIC Group has been producing machines and automobiles in the capital Beijing since 1988.

Last year, another Chinese automotive firm, Geely, bought around 9.7% shares of Daimler Group for $9 billion.