BAIC set to be a major Daimler shareholder

"Globally, Daimler is growing and it is definitely a good thing to be its shareholder," Zhang said. He said he expects BAIC's shares will rise after the crossholding cooperation.

For Daimler, the move shows its commitment to the Chinese market and its desire to cooperate with BAIC, Zhang said.

"It will gain a smoother relationship with BAIC and a better relationship with the government," Zhang said.

The move shows Daimler sees China as a promising market, and the company is sending a signal that it wants to focus on a single cooperative partner in the country, Zhang added.

"Daimler will launch one or two new products every year in the future, and many of Daimler's locally produced models will be new-energy vehicles from next year," National Business Daily's website on Thursday quoted Xu as saying.

The website said the Daimler vehicles produced by BBAC will be exported overseas in the future.

Xu said BAIC and Daimler would also intend to establish joint venture companies in aspects such as pre-owned cars and auto finance in the future.

Besides BAIC, several other Chinese automakers are exploring the possibility of joining hands with overseas brands through acquiring their shares.

In 2014, Dongfeng Motor spent 800 million euros ($901.3 million) and bought 14 percent of PSA Peugeot Citroen's shares to become one of biggest shareholders of the company.

In 2010, SAIC Motor spent $500 million on 0.97 percent of General Motors' total shares.

Li Fusheng contributed to this story.

duxiaoying1@chinadaily.com.cn

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