Exclusive: Daimler is participating in its biggest dealer

Daimler wants to take part in the largest Mercedes dealer in the world. Only a year and a half ago, the Stuttgart companies had sold numerous houses in Germany to the Hong Kong company.

By Christof Rührmair

Daimler wants to participate in the car business of the Hong Kong conglomerate Lei Shing Hong (LSH). The eligibility of the acquisition of 15 percent of LSH Auto International Limited is currently being examined by the Bundeskartellamt. Daimler confirmed to plan an entry.

LSH is the largest Mercedes dealer in the world and is active in China, Korea, Cambodia, Vietnam and Australia as well as Germany. In 2014/15, the company purchased a total of 18 branch offices in the new federal states of Daimler. In some Asian countries, LSH also sells Porsche.

Figures for 2016 are not yet available but in 2015 LSH sold more than 120,000 cars and thus generated sales of around seven billion euros. The vehicle sales market is by far the most important division of the company, but the Group is also involved in construction machinery or as a land developer.

Daimler wants to take part in the largest Mercedes dealer in the world.
 (Photo: Daimler)

Long-term cooperation

With LSH, the Group is combining "a long-standing, successful and trustworthy collaboration in sales of Mercedes-Benz products in many countries," said a Daimler spokesman. "For this reason and in order to maintain the sustainability of the long-term ownership structure, both companies have decided that Daimler will acquire a minority stake in LSH's global retail business."

The acquisition is subject to approval by the relevant authorities in several countries, including Germany, Daimler said. The Group did not wish to make any further disclosures by referring to ongoing approval procedures. At first, no statement was given by LSH either.