Chief of China’s Geely builds $9 billion stake in Daimler
The auto industry is one of the most competitive car companies in the world and the industry seems to approaching an inflection point when it comes to technology and advancement. One car company that is continuing to be a major player in the industry is Geely, which is a major car manufacturer that is based out of China. Over the past few years, Geely has made a major move to try and gain a bigger share of one of their competitors.
In this time period, Geely has continued to acquire a growing stake in the car company Daimler, which is a publicly traded company. Thus far, the company has spent almost $9 billion investing in Daimler with the hope that the investment will be able to provide Geely with access to more technology that is currently used in a variety of products and cars that Daimler produces.
With the most recent purchase of stock, Geely is now suddenly the largest holder of Daimler stock. This could continue to give Geely more influence over the car company and should give them a competitive edge. Geely started the process a few years ago when they requested that Daimler issue new shares that Geely could buy.
Once Geely has more access to Daimler, they will likely use the purchase to gain access to the electric car technology that Daimler has been providing to other car companies. This will end up being a great investment for Geely if they are able to use the tech in their cars.