(Reuters) – German vehicle manufacturer Daimler AG (DAIGn.DE) is in talks with China’s Geely Holding Group Co (0175.HK) to set up a joint venture to offer ride-hailing and car-sharing services in China, Bloomberg reported, citing sources.
The Daimler logo is seen before the Daimler annual shareholder meeting in Berlin, Germany, April 5, 2018. REUTERS/Hannibal Hanschke
The 50:50 venture is yet to be finalized, and Daimler is planning to take on industry leader Didi Chuxing on its home turf, Bloomberg reported citing people familiar with the matter.
“We have a constructive dialogue with our Chinese counterparts. I believe there is potential for both and there are more opportunities than risks. The situation is promising,” Daimler Chief Executive Dieter Zetsche said at the Paris Motor Show last week.
Geely holds a stake in Daimler and has sought an alliance in the areas of electric and autonomous vehicle technologies.
Reporting by Rishika Chatterjee in Bengaluru; Editing by Sunil Nair