BAIC wants to up its stake in Daimler

Daimler’s Chinese joint-venture partner BAIC has confirmed its intention to boost its stake in the world’s oldest car-maker.

The Beijing-based auto giant told an investment conference this month that it wants to lift its five per cent stake in Daimler – and expects Daimler to do the same in return.

Seen as a blocking move against Daimler’s largest shareholder, Geely founder Li Shufu, BAIC is working closely with the HSBC bank, which helped it build its current stake.

Shufu, the man at the helm of the Chinese group that controls the Geely, Lotus, Proton, Volvo and Lynk&Co brands, owns 9.69 per cent of Daimler in a move made early last year.

Since then, the two companies have said they will build electric smart cars together in China.