Motors Tracker

Carmaker BAIC Group plans to add to its stake in China Auto Rental, consolidating its position as main shareholder in the nation’s biggest car rental company. BAIC will buy an 8.05 percent stake in CAR from the second-largest shareholder Amber Gem Holdings for HKD529 million (USD68.3 million), raising its total holding to 28.91 percent, Beijing-based CAR said in a statement today. Amber Gem is a unit of private equity firm Warburg Pincus. Its stake will fall to 6.7 percent. As a major auto manufacturer in China, BAIC uses its self-built vehicles in its mobility services. Securing the controlling stake in CAR will help the firm expand in the sector. CAR said the deal will be completed alongside BAIC’s agreement last week to buy a 20.87 percent stake in the rental company from major shareholder Ucar for HKD1.4 billion (USD180.6 million). CAR’s former actual controller, Charles Lu, resigned as chairman and non-executive director early last month, dragged down by a fraud scandal at Nasdaq-...

SAIC Motor said today that  it will not be buying a controlling stake in China Auto Rental due to newly emerged circumstances. “ What we focus is not only acquiring the firm but also its operations after the acquisition is completed. We terminated the transaction in time to protect our shareholder ’ s interest， ”  said Chen Hong, chairman of SAIC Motor in a shareholder ’ s meeting today.  A few hours later, the parent firm of China Auto Rental said it is to sell no more than 443 million shares worth HKD1.37 billion to a unit of BAIC. The Beijing-based car-maker is expected to hold 20.87 percent of the car rental firm after the acquisition is completed. For automakers, having a ride-hailing or rental platform on the side is becoming an important driver of sales,  said  Zeng Zhiling, general manager of LMC Automotive Consulting . China Car Rental ’ s revenue was CNY1.325 million in the first quarter, a decrease of 28.3 percent, and its net losses amounted to CNY18...