A subsidiary of Geely Group Co. in Hangzhou, China, a company owned by Li Shufu and managed by Zhejiang Geely Holding Group Co., has acquired a 9.69 percent stake in Daimler AG, located in Stuttgart, Germany.
“Daimler is an outstanding company with a first-class management. It will be an honor to support this unique team under the leadership of Dieter Zetsche in the future,” said Shufu, chairman and owner of Zhejiang Geely Holding Group and Geely Group. “I am particularly pleased to accompany Daimler on its way to becoming one of the world’s leading electro-mobility providers.”
The share purchase makes Shufu currently the single largest shareholder of Daimler AG and points to a long-term commitment. For the time being, neither Geely Group nor any other company in the Zhejiang Geely Holding Group intend to acquire additional shares.
“I will fully abide by the company charter and governance structure of Daimler and respect its values and culture,” said Shufu.
With revenue exceeding RMB 270 billion (approximately $43 billion USD) in 2017, the Zhejiang Geely Holding Group is China’s largest privately owned automotive manufacturing company and one of the world’s leading providers of electro-mobility. Major assets of the group include leading Chinese automaker Geely Automobile Holdings Ltd., Hangzhou (46 percent), Volvo Cars, Gothenburg, Sweden (100 percent), Lotus Motor Cars, Norfolk, U.K. (51 percent), Proton Cars, Malaysia (49.9 percent) and London Taxi, Coventry, U.K. (100 percent).
Geely Group owns one of China’s largest car-sharing providers, Cao Cao (100 percent), operating a fleet of around 16,000 electric vehicles worldwide.
Shufu commented, “The competitors that challenge the global car industry in the 21st century technologically are not part of the automotive industry today. But challenges create opportunities. No current car industry player might win this battle against the invaders from outside without friends. To achieve and assert technological leadership, one has to adapt a new way of thinking in terms of sharing and united strength. My investment in Daimler reflects this vision.”