Daimler AG to invest in BAIC Motor for a twelve percent stake

Fri Feb 1, 2013 5:43am EST

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STUTTGART, Germany  and BEIJING,  Feb. 1, 2013  /PRNewswire/ --

* Joint strategic move in advance and support of BAIC Motor's intention to
launch an initial public offering of its shares  
* Investment through the issuance of new shares  
* Daimler first non-Chinese automotive company to take stake in Chinese OEM  
* Daimler to receive two seats on the Board of Directors of BAIC Motor

Daimler AG and Beijing Automotive Group (BAIC) will significantly deepen their
already strong strategic partnership: according to a binding agreement signed
today between executives of the two companies, Daimler AG is going to invest in
BAIC Motor, the passenger car unit of BAIC Group, one of the leading automotive
companies in  China. This important joint strategic move comes ahead of an
intention by BAIC Motor to launch an initial public offering (IPO) in the
future. Daimler's investment will take place through the issuance of new shares
corresponding to a twelve percent stake in BAIC Motor.

(Logo:  http://photos.prnewswire.com/prnh/20080409/NYW017LOGO)  

Daimler's Chairman of the Board of Management, Dr.  Dieter Zetsche, Chief
Financial Officer  Bodo Uebber, and  Hubertus Troska, Daimler's new Board Member
for  Greater China, met today at the Mercedes-Benz Museum in  Stuttgart  with
Chairman  Xu Heyi, Deputy General Manager Zhang Xiyong, and CFO Ma Chuanqi of
BAIC. As part of this meeting, they signed the contract between the two
companies. Daimler's shareholding in BAIC Motor is subject to the approval by
the relevant authorities. A closing of the transaction is expected by the end of
this year or early next year.

The agreement includes that Daimler will receive two seats on the Board of
Directors of BAIC Motor. The two companies also agreed that BAIC will increase
its stake in the production joint venture Beijing Benz Automotive Company (BBAC)
by 1% to 51% and will thus be able to consolidate this joint venture within BAIC
ahead of its IPO. At the same time, Daimler will increase its stake in the
integrated sales joint venture Beijing Mercedes-Benz Sales Service Co. by 1% to

Dr.  Dieter Zetsche, Chairman of the Board of Management Daimler AG and Head of
Mercedes-Benz Cars: "Following our technical cooperation with BAIC Motor and the
setup of our integrated sales company, we are now taking the next step in
deepening our relationship even further. Our investment is a strong sign of the
increased level of trust and cooperation between our two companies and clearly
emphasizes the long-term commitment to a joint successful future of our two
companies. It is also significant so that both companies can actively
participate in the opportunities of the Chinese automotive market."

Xu Heyi, Chairman of BAIC: "The partnership between BAIC and Daimler has entered
into its best phase ever, with further deepened cooperation in accordance with
the mutual interests and development plans between both companies. Daimler's
investment in BAIC's stake will go a long way in accelerating the development of
BAIC's self-owned brand in terms of capital, technology, management, and brand.
At the same time, this will help Mercedes-Benz to boost its business performance
in  China."

Bodo Uebber, Chief Financial Officer of Daimler commented: "Through this
strategic investment in BAIC Motor, we will be the first non-Chinese
manufacturer to take a stake in a Chinese OEM. It also gives us the opportunity
to be part of the growth of one of its major domestic participants. At the same
time, our decision demonstrates the full support of our partner's intention to
publicly list its shares in the future, further strengthening BAIC Motor's
competitive position."

Hubertus Troska, Daimler's Board Member responsible for  China  said: "BAIC is a
long-standing, strategic partner of Daimler in  China. With today's signing, we
are bolstering this already strong relationship even further. I am very excited
to be a part of our joint activities going forward."

As one of  China's largest automakers, BAIC Group sold over 1.5 million vehicles
in 2011. Daimler AG is one of the world's most successful automotive companies.
Both parties have already established a long-term strategic and trustful
partnership, including significant investments in the Chinese automotive
industry over the past years. Joint activities include BBAC, which has been
producing Mercedes-Benz passenger cars since 2006, Beijing Foton Daimler
Automotive Co., Ltd. (BFDA), which has been jointly manufacturing Auman-branded
medium- and heavy-duty trucks since mid-2012, and most recently, the
establishment of Beijing Mercedes-Benz Sales Service Co., Ltd. This significant
milestone means that all sales activities for imported and locally produced
Mercedes-Benz cars will now be combined under one roof.  

Overview: Daimler in  China

Daimler in  China  is based in  Beijing  and includes  
Mercedes-Benz (China) Ltd, Mercedes-Benz Auto Finance Ltd, Daimler Northeast
Asia Parts Trading & Services Co., Ltd., the joint ventures Beijing Benz
Automotive Co., Ltd. (BBAC), Beijing Mercedes-Benz Sales Service Co. (BMBS),
Beijing Foton Daimler Automotive Co., Ltd. (BFDA), Fujian Benz Automotive
Corporation (FBAC) and Shenzhen BYD Daimler New Technology Co. Ltd., as well as
sales companies in  Hong Kong,  South Korea  and  Taiwan.  

Local production of  Mercedes-Benzcars  began with the predecessor series of the
E-Class in the joint venture BBAC in 2006; the second C-Class series followed in
2008. BBAC has been producing the current E-Class in a long-wheelbase version
tailored specifically for the demands of the Chinese market since  May 2010; the
first locally produced GLK rolled off the production line in  Beijing  in 
December 2011.  

On the sales side, Mercedes-Benz Cars is represented in  China  with its
complete product portfolio; around 210,000 vehicles were sold in the year 2012.
Approximately 50 new dealers will be added to the sales network of already over
220 this year, making the brand increasingly present outside the Tier 1 cities. 

China  is already the fifth-largest sales market for  Mercedes-Benztrucks. With
a market share of more than 50% in the premium segment,  Mercedes-Benz Trucks 
lead the market above all in the heavy-duty segment. In addition, Daimler is
developing the volume segment of the world's biggest market for commercial
vehicles in a joint venture with Foton Motor, a Chinese truck manufacturer.
Since mid-2012, the jointly produced medium and heavy trucks of the  Auman 
brand have also been rolling off the production line in Beijing-Huairou.  

In addition, Daimler has been producing  Mercedes-Benzvans  for the Chinese
market in the Fujian Benz Automotive Corporation joint venture since  April

Daimler Financial Services  has been providing automotive financing in  China 
through Mercedes-Benz Auto Finance China since 2009. And together with BYD,
Daimler has initiated the joint venture  Shenzhen BYD Daimler New Technology Co.
Ltd  to develop an electric vehicle for the Chinese market. This joint venture
was officially approved in  March 2011.  

Further information from Daimler is available at:  
www.media.daimler.com  and  www.daimler.com

The figures in this document are preliminary and have neither been approved yet
by the Supervisory Board nor audited by the external auditor.
This document contains forward-looking statements that reflect our current views
about future events. The words "anticipate," "assume," "believe," "estimate,"
"expect," "intend," "may," "plan," "project," "should" and similar expressions
are used to identify forward-looking statements. These statements are subject to
many risks and uncertainties, including an adverse development of global
economic conditions, in particular a decline of demand in our most important
markets; a worsening of the sovereign-debt crisis in the euro zone; a
deterioration of our funding possibilities on the credit and financial markets;
events of force majeure including natural disasters, acts of terrorism,
political unrest, industrial accidents and their effects on our sales,
purchasing, production or financial services activities; changes in currency
exchange rates; a shift in consumer preference towards smaller, lower margin
vehicles; or a possible lack of acceptance of our products or services which
limits our ability to achieve prices as well as to adequately utilize our
production capacities; price increases in fuel or raw materials; disruption of
production due to shortages of materials, labor strikes, or supplier
insolvencies; a decline in resale prices of used vehicles; the effective
implementation of cost-reduction and efficiency-optimization measures; the
business outlook of companies in which we hold a significant equity interest;
the successful implementation of strategic cooperations and joint ventures;
changes in laws, regulations and government policies, particularly those
relating to vehicle emissions, fuel economy and safety; the resolution of
pending governmental investigations and the conclusion of pending or threatened
future legal proceedings; and other risks and uncertainties, some of which we
describe under the heading "Risk Report" in Daimler's most recent Annual Report.
If any of these risks and uncertainties materialize, or if the assumptions
underlying any of our forward-looking statements prove incorrect, then our
actual results may be materially different from those we express or imply by
such statements. We do not intend or assume any obligation to update these
forward looking statements. Any forward-looking statement speaks only as of the
date on which it is made.

About Daimler
Daimler AG is one of the world's most successful automotive companies. With its
Mercedes-Benz Cars, Daimler Trucks, Mercedes-Benz Vans, Daimler Buses and
Daimler Financial Services, the Daimler Group is one of the biggest producers of
premium cars and the world's biggest manufacturer of commercial vehicles with a
global reach. Daimler Financial Services provides financing, leasing, fleet
management, insurance and innovative mobility services.The company's founders,
Gottlieb Daimler and  Carl Benz, made history with the invention of the
automobile in the year 1886. As a pioneer of automotive engineering, Daimler
continues to shape the future of mobility today: The Group's focus is on
innovative and green technologies as well as on safe and superior automobiles
that appeal to and fascinate its customers. For many years now, Daimler has been
investing continually in the development of alternative drive systems with the
goal of making emission-free driving possible in the long term. So in addition 
to vehicles with hybrid drive, Daimler now has the broadest range of locally
emission-free electric vehicles powered by batteries and fuel cells. This is
just one example of how Daimler willingly accepts the challenge of meeting its
responsibility towards society and the environment. Daimler sells its vehicles
and services in nearly all the countries of the world and has production
facilities on five continents. Its current brand portfolio includes, in addition
to the world's most valuable premium automotive brand, Mercedes-Benz, the brands
smart, Maybach, Freightliner, Western Star, BharatBenz, Fuso, Setra and Thomas
Built Buses. The company is listed on the stock exchanges of  Frankfurt  and 
Stuttgart  (stock exchange symbol DAI). In 2011, the Group sold 2.1 million
vehicles and employed a workforce of more than 271,000 people; revenue totaled
€106.5 billion and EBIT amounted to €8.8 billion.

SOURCE  Daimler Corporate Communications

Florian Martens, +49 711 17-35017; Arnd Minne, +49 711 17-99092; Han Tjan,

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