Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Chinese Version   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home >> Automaker Email this story   Print this story
 
Geely chairman: No more automotive deals
Reuters | 2018/3/6

FRANKFURT -- Li Shufu, the founder and main owner of Geely, has no plans to buy further stakes in carmakers after building up a holding of almost 10 percent in Germany's Daimler, he told a German newspaper.

"Currently we have no plans for further purchases. We will concentrate for now on the development of existing holdings. There are many ideas, and there is much to do," weekly Bild am Sonntag quoted Li as saying in an interview published on Sunday.

Li has led a major acquisition push globally since 2010, when he took over Swedish car brand Volvo from Ford Motor Co. in a $1.8 billion deal.

Over the last year, he has snapped up a $3.3 billion stake in truck maker AB Volvo, a majority stake in sports car maker Lotus, a 49.9 percent stake in Malaysian automaker Proton and flying car start-up Terrafugia. He already owns LEVC, the maker of London's iconic black cabs.

His purchase of a $9 billion stake in Daimler, unveiled last week, surprised the market and rekindled fears in Germany of its highly prized industrial expertise falling into Chinese hands.

When asked by Bild am Sonntag about those concerns, Li said that his focus was on future technology.

"For me, it's not about available technology but what is coming in the future. Or to put it another way, I would like a slice of a cake that is bigger than the cake of today," he said.

When asked if Geely and Daimler could work together on electric cars, Li said he was keen to cooperate on various areas.

He also said that he had no plans to make changes to Daimler's cooperation with other Chinese partners, such as BAIC or BYD, and that all parties could benefit from sharing of ideas.

According to multiple sources and documents reviewed by Reuters, Li used Hong Kong shell companies, derivatives, bank financing and carefully structured share options to become Daimler's single largest shareholder.

Asked by Bild am Sonntag how he financed the purchase, he said some of the money was his own and some was financed via foreign banks, without providing details.

He said none of the funding came from the Chinese government and that he did not seek the approval of the government before buying the stake.

"We have never asked the Chinese government for its approval of an investment ahead of time. The same goes for our Daimler stake," he said.


Related Stories
  • Honda localizes transmission output for hybrid vehicles
  •     --Published:2018/18/9
     
  • Geely, citing trade uncertainty, postpones Volvo IPO
  •     --Published:2018/11/9
     
  • Toyota, Geely exploring joint hybrid vehicle tech
  •     --Published:2018/7/9
     
  • Geely August deliveries surge behind electrified volume, Lynk & CO
  •     --Published:2018/7/9
     
  • Geely bets on bigger cars for growth with new plant
  •     --Published:2018/31/8
     
  • NavInfo secures navigation map contract with Daimler
  •     --Published:2018/31/8
     
  • Geely, Malaysia's DRB-Hicom to build Proton cars in China, report says
  •     --Published:2018/28/8
     
  • Geely first-half profit surges 54%
  •     --Published:2018/24/8
     
  • EV-sharing services backed by Geely, SAIC seek new funding to spur growth
  •     --Published:2018/14/8
     
  • Geely mulls 13 billion yuan revival plan for Lotus
  •     --Published:2018/10/8
     
  • Daimler in talks to build Smart EVs in China, sources say
  •     --Published:2018/10/8
     
  • Geely sales continue to surge; Great Wall deliveries slump
  •     --Published:2018/10/8
     
  • Lynk & CO launches sales of first plug-in hybrid
  •     --Published:2018/31/7
     
  • Daimler, Baidu deepen automated driving alliance
  •     --Published:2018/27/7
     
     

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     

     
     

    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
     
    Home | Help Center | About Us | Privacy Policy | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.
    ICP06057291