Scion iQ EV will only be built in small numbers and not sold to consumers.

Foothill Transit's Proterra electric transit bus.

NEWS

MON

04-Feb-2013

PHOTO CAPTION: Kandi Technologies electric car; company is favorite among penny-stock traders.

Geely Partners with Kandi, While BAIC Allies with Daimler

China-watcher Doug Young analyzes recent moves by two of China's largest carmakers.

News bits from the automobile space indicate the long-awaited IPO by Beijing-based car maker BAIC Motor may finally be coming soon, while the struggling Geely (0175.HK) is chasing a couple of distracting new initiatives in the electric vehicle and overseas markets. Let's start with the BAIC news, as that looks the most interesting since it could provide investors with an interesting IPO opportunity later this year.

Media are reporting that BAIC's joint venture partner, German luxury automaker Daimler (Frankfurt: DAIGn), is paying 640 million euros for 12 per cent of BAIC. Daimler has said the deal makes it the first global brand to own a direct stake in a Chinese automaker, and added its investment was in preparation for a potential IPO by BAIC.

Under the deal, Daimler will gain 2 seats on BAIC's board. But perhaps most importantly, the deal will see BAIC boost its stake in its Daimler joint venture to 51 per cent, meaning BAIC can consolidate all of the joint venture's performance into its own results. That's an important accounting move, since BAIC, like many other major Chinese automakers, counts its foreign joint venture as one of its biggest assets with greatest growth potential.

Article Views: 891

READ COMPLETE ARTICLE >>

IMPORTANT NOTICE: To read this South China Morning Post/China news story, click the READ COMPLETE ARTICLE link above. This will launch a separate window to the original news source. To comment on this story use the Reader's Comment form below.

RELATED NEWS ITEMS

Geely Unveils IG Concept Car with Electric Drive Option

Geely Shows Off EC7 Electric Sedan in Shanghai

READER COMMENTS

ADD YOUR COMMENTS BELOW

Posting comments is restricted to our FREE and PREMIUM subscribers. Once you log in, allowing us to implant a security cookie on your browser, the comment form will appear. To become a free BASIC subscriber, sign up here. We will not spam you or sell your email, and you'll receive our Weekly Brief email newsletter. You then will be permitted to post comments.