Daimler Seeks Tighter Ties to Chinese Suppliers

Daimler AG says the company plans closer ties with Chinese supplier of parts of electrified and connected cars because of their technological expertise.

“China is more advanced than the United States in many areas of innovation,” asserts Wilko Stark, who heads procurement for the carmaker’s Mercedes-Benz brand. He cites such companies as Alibaba and Tencent as global leaders in connectivity tech.

Stark tells reporters in Germany that Mercedes will rely more heavily on suppliers that take a leadership role in r&d and manufacturing efficiency. “We have no choice,” he declares.

Last year, Mercedes-brand sales in China climbed 11% to 653,000 cars and SUVs, according to the company.