Beijing Automotive Industry Holding Co. (BAIC) on Tuesday entered into a strategic agreement with its German partner Daimler AG, which will see the latter taking a 12 percent stake in BAIC’s self-brand passenger car business, Xinhua news agency reported. The deal is seen as a move to inject capital into BAIC to facilitate its listing later, the report said. As part of the deal, BAIC will increase its stake in a manufacturing joint venture, Beijing Benz Automotive Corp., to 51 percent from 50 percent. Daimler, meanwhile, will increase its stake in a sales joint venture by the same extent to 51 percent. The German firm will also transfer some of its key technologies used on the Mercedes-Benz E-Class passenger cars to BAIC for free. China is seen by Daimler as its most important market outside Europe. Its joint-venture engine production facility with BAIC commenced output on Monday. The facility is said to be capable of manufacturing 250,000 Mercedez-Benz engines a year.
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