As part of a strategy to revive its slowing China operations, Daimler AG signed an $845 million agreement with China’s Beijing Automotive Group on November 19. Under the agreement, Daimler will own a 12 percent equity stake in Beijing Auto’s passenger car unit, BAIC Motor, and will have two seats on its board.
The move comes as the German automaker—which has been losing sales in China to rivals BMW and Audi—has engaged in a sweeping overhaul of its China operations. It has added dozens of dealerships, merged competing organizations, and opened its first international engine plant in Beijing. Since January 2013, Daimler’s deliveries in China are up 8 percent.