Daimler's Chinese partner BAIC has increased its stake in the German auto giant to 5 percent, the automakers said Tuesday.
Daimler and state-owned BAIC have jointly operated several plants in China for more than a decade and Daimler has been an investor in BAIC since 2013, with its current holdings standing at 9.55 percent.
“We are very pleased that our long-standing partner BAIC is now a long-term investor in Daimler,” Daimler CEO Ola Kaellenius said in a statement.
The increase in BAIC's stake will prevent fellow Chinese automaker Geely from taking over as Daimler's dominant Chinese partner. Geely purchased a 9.7-percent stake in Daimler in 2018, and earlier this year Geely purchased 50 percent of Daimler subsidiary Smart.
However, BAIC's increased stake brings the automaker more sway in future decisions. In fact, Daimler has now reassured BAIC that any new industrial alliances will only happen after a consensus is found with BAIC, Reuters reported on Tuesday.