Generation EQ, Exterieur, Studio ;

Generation EQ, exterior, studio;
Daimler AG - Global Communicatio/MediaPortal Daimler AG/Daimler AG
Generation EQ, Exterieur, Studio ; Generation EQ, exterior, studio;
Now playing
01:50
How to design a car for the future
A self-driving vehicle from Mobileye's autonomous test fleet sits parked in front of the Manhattan Bridge in June 2021. Mobileye tests its technology in complex urban areas in preparation for future driverless services. (Credit: Mobileye, an Intel Company)
Mobileye
A self-driving vehicle from Mobileye's autonomous test fleet sits parked in front of the Manhattan Bridge in June 2021. Mobileye tests its technology in complex urban areas in preparation for future driverless services. (Credit: Mobileye, an Intel Company)
Now playing
00:56
See the first self-driving car to take a spin on NYC streets
Nimai Malle
Now playing
02:36
Watch the new Ford Bronco go way off road
Ferrari
Now playing
01:09
See Ferrari's new plug-in hybrid
The Airstream Interstate 24X is the camper makers first all-terrain van
Airstream
The Airstream Interstate 24X is the camper makers first all-terrain van
Now playing
01:33
Check out Airstream's first all-terrain adventure van
Now playing
01:02
Meet the Maverick, Ford's compact $20k truck
Now playing
01:03
This boat-inspired Rolls-Royce could be the most expensive new car ever
The new electric Ford F-150 Lightning
Gabe Ramirez, CNN
The new electric Ford F-150 Lightning
Now playing
01:59
Check out the new electric Ford F-150 Lightning
The new all-electric Mercedes-EQS
Mercedes-Benz AG
The new all-electric Mercedes-EQS
Now playing
01:05
See the new all-electric EQS luxury sedan from Mercedes
The all wheel-drive, electric Nobe GT100
Nobe Cars
The all wheel-drive, electric Nobe GT100
Now playing
01:27
These tiny cars are cute and easy to park. Will anyone want them?
GM unveils new electric Hummer SUV
GM
GM unveils new electric Hummer SUV
Now playing
00:55
The Hummer electric SUV is coming
Canoo
Now playing
00:59
See this Tesla competitor's new electric pickup
McLaren
Now playing
01:23
The McLaren Artura is an electric hybrid with the speed of a supercar
Now playing
01:01
See Porsche's 911 GT3 on the racetrack
Now playing
01:24
See Ford's new Raptor F-150 in action
Natalia V. Osipova
Now playing
02:28
Review: The Ghost is more modest and simple, but it's still a Rolls-Royce
London CNN Business —  

Daimler and China’s BAIC are the latest carmakers to take their relationship to the next level.

The German owner of Mercedes-Benz confirmed Tuesday that its Chinese partner, BAIC, has acquired 5% of its shares. Daimler (DDAIF) already owns 9.6% of the listed subsidiary BAIC Motor.

“This step reinforces our successful partnership and is a signal of trust in the strategy and future potential of our company,” Daimler executive Ola Källenius said in a statement.

Mercedes-Benz cars are manufactured in China via a partnership between the two companies.

China is the luxury brand’s largest market, accounting for more than a quarter of global sales in 2018.

Shares in Daimler advanced 3% on Tuesday in Frankfurt. Li Shufu, chairman of another Chinese carmaker Geely, owns 9.7% of Daimler. Other major Daimler shareholders include the Kuwait Investment Authority (6.8%), Bank of America (BAC) (5.2%) and BlackRock (BLK) (5.1%).

The BAIC investment reflects two industry priorities: Global carmakers are teaming up with Chinese rivals to improve their standing in the huge market, and they’re partnering to share the cost of developing new technologies.

Toyota (TM) announced Friday that it had signed an agreement with China’s BYD (BYDDF) to develop electric vehicles. Volkswagen (VLKAF) has paired up with Ford (F) on a similar project, and Honda (HMC) has invested in GM’s (GM) self-driving car unit.

The trend toward cooperation has accelerated as traditional carmakers come under increased pressure from upstarts like Tesla (TSLA) and tech companies including Uber (UBER) and Google (GOOGL) parent Alphabet.

Daimler has been particularly focused on partnerships.

It has joined with German rival BMW (BMWYY) on driverless and ride sharing technology. It has partnered with Geely to develop Smart brand electric vehicles for urban markets.