German Government 'Especially Watchful' Of Mercedes-China Deal

The German Economy Minister issued the warning amid concerns that Chinese firm Geely could gain too much influence in Europe via large investments

Jason Reed posted in Shifting Lanes

3y ago

2.3K

A few days ago, Chinese carmaker Geely (owners of Volvo and the London Taxi Company) announced that it had bought a 9.7% stake in Daimler, owner of Mercedes-Benz, making it the largest shareholder.

DriveTribe

BREAKING: Volvo's Chinese Parent Buys Massive Stake In Mercedes | DriveTribe

Chinese carmaker Geely already owns Volvo and the London Taxi Company, and now says it hopes to cooperate with Daimler on electric cars

News of the investment was met with fears in Europe that Geely could be seeking access to technology and innovation in exchange for the investment.

The Chinese firm has said that it looks forward to 'cooperating' with Daimler on electric motoring technology.

A statement from the German government warned that the deal must not be used as a 'gateway' for Chinese industrial policy interests.

German Economy Minister Brigitte Zypries - Image Credit: Rüdiger Wölk/Der Tagesspiegel

German Economy Minister Brigitte Zypries - Image Credit: Rüdiger Wölk/Der Tagesspiegel

German Economy Minister Brigitte Zypries said that the German government would not block the investment, but that it will 'keep an especially watchful eye'.

Could this stark warning from the top of the German government spell trouble for the deal?