Geely chairman wants to work more closely with German Daimler

Geely chairman wants to work more closely with German Daimler

May 24, 2020 0 By autotimesnews

One of the largest Chinese companies intends to expand significantly despite the monstrous consequences for the entire automotive industry from the coronavirus. The company wants to work more closely with the German concern Daimler.

The coronavirus pandemic has had a significant impact on the entire automotive industry. Currently, many automakers are seeking financial assistance to overcome the crisis, especially for Japanese car brands, as the country is currently in recession.

 China, of course, is one of the countries that has been hit hard by the economic difficulties caused by the coronavirus pandemic. In February alone, car sales in China fell 79 percent in February alone, compared with the previous year.

“This, however, is temporary, according to Cai Ronghua, an employee of the National Development and Reform Commission (NDRC),” Reuters reported.

At the same time, Chinese automobile companies are ready to bounce back from the decline in sales – one of them is Geely. One of the largest Chinese companies is striving for further expansion by strengthening its influence on other major global automotive brands, in particular the German concern Daimler. Reuters reported that Geely chairman Lee Shufu wants to work more closely with Daimler, which owns the premium Mercedes-Benz brand.

 It should be noted that Geely already owns a 9.69% stake in Daimler, which it bought back in 2018. This formed a Sino-German collaboration on the creation of electric versions of Smart cars, as well as an investment in Volocopter’s “taxi cab” company.

 In addition to its shares in Daimler, Geely also holds controlling interests in Volvo, Polestar, Lotus, Proton and Lynk & Co. The latter is reportedly ready to start selling its cars in Europe this year.