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Transcript

00:00:01
>> China is making a massive waves in the global auto market after car maker Geely bought a $9 billion stake in Germany's Deimler, the owner of Mercedes Benz. Geely shares jumped some 8% on Monday after the deal was announced late Friday to buy 9.7% of the firm. Reuters Edward Taylor in Frankfort says it marks a new chapter in China's assertiveness.
00:00:23
>> China's ambitions to grow oversees are growing, and so they need to team up with more western companies. This is the latest example of a deal where a western car maker Gains a big Chinese investor, in an effort to help the Chinese grow out of China into the rest of the world.
00:00:39
>> Geely chairman Li Shufu has led a major acquisition push since 2010. It already has major stakes in Sweden's Volvo, London Taxi Company and flying car startup, Terrafugia. But the Dunlap acquisition is a major gamble. Lee calls it a quote, battle against foreign companies such as Google and Uber, who are shaking up the global car market with new electric and driver-less technology, and Germany is wary.
00:01:04
>> The tactics used by Geely, which involve stealth takeover instruments and very late disclosure, are bound to raise concerns in Germany, and Berlin is already concerned about losing control of its technology leaders. The purchase of KUKA, a robotics maker, sparked a political backlash in Berlin, even though KUKA's management was on board.
00:01:24
Berlin politicians are increasingly concerned that the playing field between Germany and China is no longer level.>> Beijing is bringing in new quotas from next year for the world's largest auto market, and Chinese car makers are under pressure to improve technology and hit strict targets for electric and hybrid vehicles.
00:01:41
Deimler and its Chinese partner BAOC are investing almost $2 billion in a state of the art Chinese factory building Mercedes-Benz cars, including electric vehicles.