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Daimler rebuffs Geely offer to buy stake

HONG KONG/BEIJING - Daimler AG has turned down an offer from China's Geely to take a stake of up to 5 percent via a discounted share placement, as the German automaker has long been reluctant to see existing shareholdings diluted, sources with knowledge of the talks said. A stake of that size would be worth $4.5 billion at current market prices. Although Daimler declined the offer, it told Geely it was welcome to buy shares in the open market, the sources added. Carmakers in China have embarked on a flurry of dealmaking, as they scramble to boost production of electric and plug-in hybrid vehicles ahead of tough new quotas to be imposed by Beijing, which wants to reduce urban smog and lower the country's reliance on oil. People with knowledge of Geely's thinking said the company was keen to access Daimler's electric car battery technology and wanted to establish an electric car joint venture in Wuhan, the capital of Hubei province. Geely, which also owns Swedish car maker Volvo, is still hopeful it can secure a deal in some form over the coming weeks, they added. The two automakers met in Beijing in recent weeks at Geely's behest. There, the Chinese firm, formally known as Zhejiang Geely Holding Group, offered to take a stake of between 3 percent and 5 percent if Daimler would issue new shares at a discount, the sources said. It was not immediately clear what kind of discount for the shares Geely had in mind or whether Geely was interested in buying the shares on the open market. A spokesman for Geely declined to comment. A spokesman for Daimler said the company was "very happy with our shareholder structure at present", but added that it would welcome new investors with a long-term interest in the company. Shares in Daimler were up 1 percent in early Wednesday trade, in line with the broader market.DAIMLER ALREADY TIED TO BAIC, BYD Geely, which has a market value of some $32 billion, is the leading domestic brand in China with a 5 percent market share, according to an analysis by Nomura Securities. A stake of 5 percent would establish it as Daimler's third-largest shareholder behind the Kuwait Investment Authority and BlackRock, who hold 6.8 percent and 6 percent respectively, according to Reuters data.

The UK votes for Brexit and it will impact automakers

It's the first morning after the United Kingdom voted for what's become known as Brexit – that is, to leave the European Union and its tariff-free internal market. Now begins a two-year process in which the UK will have to negotiate with the rest of the EU trading bloc, which is its largest export market, about many things. One of them may be tariffs, and that could severely impact any automaker that builds cars in the UK. This doesn't just mean companies that you think of as British, like Mini and Jaguar. Both of those automakers are owned by foreign companies, incidentally. Mini and Rolls-Royce are owned by BMW, Jaguar and Land Rover by Tata Motors of India, and Bentley by the VW Group. Many other automakers produce cars in the UK for sale within that country and also export to the EU. Tariffs could damage the profits of each of these companies, and perhaps cause them to shift manufacturing out of the UK, significantly damaging the country's resurgent manufacturing industry. Autonews Europe dug up some interesting numbers on that last point. Nissan, the country's second-largest auto producer, builds 475k or so cars in the UK but the vast majority are sent abroad. Toyota built 190k cars last year in Britain, of which 75 percent went to the EU and just 10 percent were sold in the country. Investors are skittish at the news. The value of the pound sterling has plummeted by 8 percent as of this writing, at one point yesterday reaching levels not seen since 1985. Shares at Tata Motors, which counts Jaguar and Land Rover as bright jewels in its portfolio, were off by nearly 12 percent according to Autonews Europe. So what happens next? No one's terribly sure, although the feeling seems to be that the jilted EU will impost tariffs of up to 10 percent on UK exports. It's likely that the UK will reciprocate, and thus it'll be more expensive to buy a European-made car in the UK. Both situations will likely negatively affect the country, as both production of new cars and sales to UK consumers will both fall. Evercore Automotive Research figures the combined damage will be roughly $9b in lost profits to automakers, and an as-of-yet unquantified impact on auto production jobs. Perhaps the EU's leaders in Brussels will be in a better mood in two years, and the process won't devolve into a trade war. In the immediate wake of the Brexit vote, though, the mood is grim, the EU leadership is angry, and investors are spooked.

Car2go introduces four-seat Mercedes B-Class vehicles

Easily identified by its huge fleet of blue-and-white Smart Fortwos in cities around the world, Daimler's Car2go car sharing service is growing in Canada – both in the number of vehicles and the doors that they have. For the first time in North America, the company is renting a model with a usable backseat thanks to a new pilot program bringing 75 examples of the Mercedes-Benz B-Class to Toronto, Vancouver, and Calgary. The point of adding these hatchbacks to the ranks is to offer an option for those seeking more than the paltry room that the ForTwo offers. Car2Go imagines people using the B-Class to haul extra people in the back or just for the added cargo space. The vehicles wear the same blue-and-white look as the rest of the fleet, but they're specially identified for users in the smartphone app. Best of all, for this pilot program, their rental cost is the same 41 cents per minute as the tinier Smarts. The car sharing service has already started testing the waters of offering the B-Class in Germany. Its Car2Go Black pilot program was announced last year and placed 100 of the hatchbacks in both Berlin and Hamburg. car2go Just Got A Lot More Spacious Carsharing Leader Introduces Four-Door Vehicles For The First Time In North America AUSTIN, Texas, Sept. 28, 2015 /CNW/ -- car2go N.A., LLC, the market leader for one-way carsharing in Canada, announced today that car2go will be introducing 75 four-door vehicles to its fleet in Toronto, Vancouver and Calgary. The pilot program, which officially launches today, provides over 300,000 car2go members in Canada exclusive access to the Mercedes B-Class vehicle, a roomy, versatile alternative to car2go's signature smart fortwo vehicle. The new four-door vehicles are also equipped with the latest car2go technology, allowing members the ability to control their entire car2go experience seamlessly through the official car2go smartphone app. car2go will be introducing 75 four-door vehicles to its fleet in Toronto, Vancouver and Calgary. CLICK TO TWEET: car2go introduces Mercedes vehicles in Canadian markets for the first time http://c2g.cc/Gdscbf "As our members embark on new life chapters – whether moving to a new residence or growing their family – we want to continue providing an affordable and convenient transportation option that allows them to go wherever life takes them," said Paul DeLong, President and CEO of car2go N.A.