Geely Has Its Eye on Daimler: the Company Plans to Expand Cooperation

The COVID-19 pandemic has had a significant impact on the automotive industry.

Currently, many car manufacturers are looking for financial assistance to overcome the crisis, especially Japanese car brands, as the country is currently in recession. Not only manufacturers, but also other players of the automotive market face huge challenges. So, this week, the oldest car rental company Hertz announced its bankruptcy.

Geely Has Its Eye on Daimler: the Company Plans to Expand Cooperation photo 2

China is certainly one of the countries whose economy has been seriously shaken by the pandemic. Only in February, Chinese car sales fell by 79%. At the same time, China-based car companies are gradually shaking off the crisis and are already restoring their positions in the market. One of them is Geely. The reigning best-selling Chinese car brand wants to develop further by increasing its influence over other major global car companies, in particular Daimler. Reuters reported that Geely’s Chairman Li Shufu wants to expand cooperation with Daimler, the corporate parent of Mercedes-Benz.

It is worth noting that Geely already holds 9.69% of shares in Daimler. The shares were bought back in 2018. This formed a Chinese collaboration for the production of Smart’s compact and premium models, as well as an investment in Volocopter for the production of flying taxis. Besides, Geely also owns controlling stakes in Volvo, Polestar, Lotus, Proton and Lynk & Co. The latter is reportedly ready to sell its cars in Europe this year.

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