Home > auto industry, business, germany > Daimler Says Abu Dhabi Investment Will Provide Cash Advantage

Daimler Says Abu Dhabi Investment Will Provide Cash Advantage

Daimler AG, the second-largest maker of luxury cars, said the sale of a 9.1 percent stake to an Abu Dhabi investment fund gives it an advantage over rivals that have yet to seek additional cash as automotive markets shrink.

Daimler raised 1.95 billion euros ($2.66 billion) selling new shares to Aabar Investments PJSC. The money will be used to finance fuel-saving technology such as development of battery- powered vehicles, Chief Executive Officer Dieter Zetsche said today at a Stuttgart, Germany, news conference.

The investment buttresses Daimler’s resources as the worst auto-industry crisis in decades forces the maker of Mercedes- Benz cars and trucks to cut hours for 54,000 German assembly- line workers and close two plants in North America. Carmakers need capital as deliveries fall, and Daimler has a “first-mover advantage” in winning Aabar as a shareholder, Zetsche said.

“We are not surprised by the capital increase and indeed expect similar moves” by auto manufacturers across Europe, Adam Jonas, a London-based Morgan Stanley & Co. analyst with an “overweight” recommendation on Daimler, said today in a research report.

Complete article

This article was originally posted on Bloomberg

Categories: auto industry, business, germany Tags: ,
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s

%d bloggers like this: