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BAIC Motor (1958.HK) assigned 35% equity of Fujian Benz, BAIC-Daimler jointly promotes development of Fujian Benz

2016-06-13

On June 12, the signing ceremony of the equity transfer agreement between BAIC Motor Corporation Ltd. (H-share listed company, BAIC Motor 1958.HK) and Fujian Motor Industry Group Co. (FJMG) was held in Fuzhou. BAIC Motor was assigned 35% equity of Fujian Benz held by FJMG, and the two sides will jointly hold 50% equity of Fujian Benz, and promote the sustained development of Fujian Benz in cooperation with Daimler.

Xu Heyi, chairman of BAIC Group and Huang Chun, president of FJMG sign the agreement

In recent years, the demand for business reception and business travel has soared with the rise in overall consumption power and consumption demands in China, and the explosion of the demand for premium light commercial vehicles is near at hand.

As Daimler's only light commercial vehicle manufacturing base in Asia and Oceania, Fujian Benz has the most complete product lineup. BAIC's entry into the premium light commercial vehicle field shows its insight into the future of the Chinese auto market, and is a new power point in the "thirteenth five-year" period.

Actually buying into Fujian Benz is also the "third cooperation" between BAIC Motor and Daimler after technical cooperation and capital cooperation. After the conclusion of this agreement, BAIC Motor will work with Daimler to plan the strategy of Fujian Benz, and inject new vitality into Fujian Benz through all-round collaboration in technology, talent and strategy.

In 2016, the market share of Beijing Benz continued to expand to over 40 percent ahead of other joint venture brands in China. Such outstanding performance has undoubtedly injected strong vitality into BAIC Motor. The move of BAIC Motor (1958.HK) to buy into Fujian Benz, a domestic leading premium light commercial vehicle manufacturer, tallied with the trend of vehicle consumption diversification, further extended the range of cooperation with Daimler in vehicle operations, completed the strategic layout of two joint venture vehicle manufacturing bases in the south and north of China, extended the lead of BAIC in China, and boosted the confidence of BAIC Motor in the capital market.