Chinese Great Wall is interested in buying Daimler

Chinese Great Wall is interested in buying Daimler

June 21, 2021 0 By autotimesnews

The two automakers are in talks on a potential deal that could generate several hundred million dollars for the German concern.

Chinese automaker Great Wall Motor is considering acquiring one of Daimler’s factories in Brazil as it expands outside its home country. The two automakers are currently in talks on a potential deal that could fetch several hundred million dollars, a source told Automotive News, who asked not to be named.

Discussions are ongoing.

A Great Wall spokesman was unable to comment on this issue. A Daimler spokeswoman said the company continues to explore various options for restructuring the business, but declined to comment further.

The German automaker said in December it would stop car production in Brazil, citing difficult market conditions. Recall that the concern opened its plant in Irasemapolis in 2016 to produce the Mercedes-Benz C-Class sedan and GLA crossover. The company has invested over R $ 600 million ($ 120 million) in a plant that has a production capacity of 20,000 vehicles per year.

At the same time, for the last 2 years, Great Wall has been regularly acquiring new real estate. Last year, the company announced the purchase of facilities in India and Thailand from General Motors. He reportedly became the full owner of the Thai factory in November.

Daimler’s largest shareholder, Chinese billionaire Li Shufu, is also the founder and chairman of the board of Zhejiang Geely Holding Group. Great Wall believes Geely Automobile Holdings is a competitor to Daimler.