Geely takes a £6.4 billion stake in Daimler

The Chinese brand that owns Lotus, Polestar and Volvo is now the major shareholder in the Mercedes-Benz parent company

Mercedes badge

Mercedes has a new major shareholder in the shape of Geely, the brand that already owns Volvo and recently brought you performance car spin-off Polestar. Geely, under the guidance of its billionaire owner Li Shufu, has taken a £6.4 billion stake in Daimler, the parent company of Mercedes-Benz, securing 9.69% of the firm.

It’s thought that the move from the Chinese company that also recently purchased Lotus is an attempt to secure technological cooperation from Mercedes, the German marque being seen as a leader in the electric vehicle field under the auspices of its all-electric EQ brand. Geely recently launched both the Polestar electric performance car brand and Lynk & Co - an attempt to sell EVs to younger customers around the world.

With brands including Proton, the London Electric Vehicle Company - maker of the new London Taxi - and flying car firm Terrafugia also on its books, Geely’s latest acquisition has drawn inevitable comparisons with the multi-brand Volkswagen Group. For its part, Daimler has said that it welcomes another major shareholder.

What is Geely?

In 30 years Geely has gone from selling fridges to over 400,000 cars under its own name, paid Ford $1.8 billion to buy Volvo in 2010 and, more recently, acquired a 51 per cent stake in Lotus. Then it separated the Polestar performance arm from Volvo to create a standalone EV focussed performance brand.

The Polestar project will be headed by a 911-sized, 600bhp hybrid GT car and see a range of performance orientated electric performance cars be built in China and sold globally via an online sales portal that will see you only lease a Polestar rather than ever owning it. Away from the electric cars, Geely also holds the key to the future of Lotus and, of course, the next Elise.  

Geely isn’t a name that has appeared in evo, products under its own brand are never likely to. However, the Chinese conglomerate now holds the future of one of the world’s most famous sports car brands in one hand while simultaneously giving the green light to an electric car company that only has performance top of its agenda and has a major stake in the mighty Mercedes-Benz.  

Recommended

Mercedes-AMG GT63 S E Performance revealed – 831bhp monster finally arrives
GT63 S E Performance
Mercedes

Mercedes-AMG GT63 S E Performance revealed – 831bhp monster finally arrives

It’s taken its time, but AMG has finally delivered a groundbreaking high performance PHEV
6 Sep 2021
Mercedes-Benz EQE breaks cover – EV assault continues with E-class-sized saloon
Mercedes EQE
Mercedes

Mercedes-Benz EQE breaks cover – EV assault continues with E-class-sized saloon

This is Mercedes’ most important EV yet – a new E-class, but not as you know it
5 Sep 2021
Mercedes-Benz Vision EQXX flagship teased – 620-mile electric saloon under development
Mercedes-Benz Vision EQXX flagship teased
Mercedes

Mercedes-Benz Vision EQXX flagship teased – 620-mile electric saloon under development

As Mercedes-Benz outlines its future strategy, we’ve been given our first glimpse of the next step in its EV offensive
22 Jul 2021
Mercedes S-class 2021 review – the ‘best car in the world’ just got better
Mercedes S-class – front tracking
Mercedes

Mercedes S-class 2021 review – the ‘best car in the world’ just got better

It may be slipping out of fashion, but the institution that is Mercedes’ S-class is only getting stronger
22 Jul 2021

Most Popular

2022 BMW M3 Touring teased ahead of reveal
2022 BMW M3 Touring
BMW M3

2022 BMW M3 Touring teased ahead of reveal

BMW has released new images of its upcoming M3 Touring before it reaches customers next year
24 Sep 2021
Porsche 911 Carrera 4 GTS 2022 review – middle child 992 shapes up
Porsche 911 GTS review (992) – front cornering
Porsche 911 Carrera

Porsche 911 Carrera 4 GTS 2022 review – middle child 992 shapes up

Two and a half years after the launch of the 992, the GTS treatment both adds and subtracts but does the result gel on the road?
21 Sep 2021
Lotus Emira First Edition priced from £75,995 – production to commence in 2022
Lotus Emira
Lotus

Lotus Emira First Edition priced from £75,995 – production to commence in 2022

First examples of the new Lotus Emira will roll off the production line early next year, with the entry-level four-cylinder to follow
20 Sep 2021