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Lotus owner to become shareholder of Mercedes Benz


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So ZHG Geely is printing money right now or has the most incredible credit line (it helps owning a bank or two I guess).

After being told that they could not buy stock in Daimler at a preferential price, they decided to just go on the stock market and snap around 5% of Daimler group - Mercedes Benz mother company. The valuation of the purchase according to Autocar piece is a very cool GBP 3.5B - remember that the Lotus deal was a "cheap change" GBP 51M.

http://europe.autonews.com/article/20180205/ANE/180209884/geely-could-become-daimlers-biggest-shareholder-report-says

https://www.autocar.co.uk/car-news/new-cars/geely-plans-become-largest-daimler-shareholder

Such a move would/could open (oblige/force/strong arm) Mercedes-Benz into some form of cooperation with Geely car brands.  

 

Interestingly the Chinese government is now blocking Chinese state owned companies from acquiring foreign companies. That new law has no or little impact on Geely as it is privately owned so it enjoys more freedom when it comes to overseas acquisition as their recent shopping spree Proton, Lotus, Terrafuggia, Volvo AB, confirms it. 

https://www.cnbc.com/2016/08/16/china-companies-face-political-roadblocks-to-overseas-acquisitions.html

 

Also interesting to note is that Aston Martin's CEO - a company tied with Daimler Group which owns some 10 to 17 % of the company - recently said that Aston Martin was looking for a Chinese partner to develop their electric car capability. Is it me or all signs point to Geely these days. With a market cap of  $12.7B (according to Forbes) I really hope Geely has the legs and that they are not stretching themselves too thin as their investment level is massive right now. At the moment their key indicators are mostly green and their Chinese sales are even better than anticipated for 2017 with revenue estimated at $8.05B 

https://paultan.org/2018/01/09/geely-achieves-record-year-in-2017-selling-1-24-million-vehicles-boyue-sales-surpass-30000-units-per-month/

And 2018 should be another record year in terms of sales on their home market where they should exceed 1.5M vehicles sold, well on their way to the company's objective of 2M vehicles sold on their home market (including Lynk & Co sales in china) by 2020.

I really hope their investment in Lotus will be Massive! 

 

 

Edited by NedaSay
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Well if they manage to buy the shares and then get a board member that can coerce the board into making a deal to share components and bearing in mine that Geely already has a wealth of  very good components thanks to Volvo... But that Geely/Volvo do not have a V8 right now. Maybe just maybe if a potential Lotus Esprit is not a strict EV from the get go and does require a potent V8 engine then and just then maybe... 

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40 minutes ago, NedaSay said:

Well if they manage to buy the shares and then get a board member that can coerce the board into making a deal to share components and bearing in mine that Geely already has a wealth of  very good components thanks to Volvo... But that Geely/Volvo do not have a V8 right now. Maybe just maybe if a potential Lotus Esprit is not a strict EV from the get go and does require a potent V8 engine then and just then maybe... 

Like you're thoughts and opinions as always let's hope for a bright future, it's not looking to bad at the moment. Hoping for big things in the next 5years and I am sure the company as now the owners to deliver it.

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  • 3 weeks later...

Ok the official number is out Zhejiang Geely Holding Group is now the largest shareholder of Daimler Benz.

Li Shifu just spent $9B on the acquisition of 9% of Daimler Benz (Mercedes)  in order to become the largest shareholder in the company.

That means that Geely will get at least one administrator on the board of directors, this could elevate Geely auto group to the rank of de facto strategic partner. 

In the meantime Volvo announced that they won't develop the 2L any further in a meaningful way, this was long expected, the Volvo range is set to be hybridized completely within the next two year with full EV variants of current and future models to follow soon. However Volvo hints at powerhikes coming from the electric motors to improve BHP and torque making the cars rear bias in the process

https://www.roadandtrack.com/new-cars/car-technology/a18658854/volvo-wont-develop-a-new-generation-of-gas-engines/

Thanks to @nerobi for the tip-off.

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