If media reports emanating from Germany are to be believed, Daimler AG may be on the verge of picking up a stake in Volvo Cars. n addition, there is also talk of Daimler being open to supplying engines to the Swedish company.

Both companies have declined to comment, with Daimler putting it down to pure speculation.

It may be pertinent however, considering that Chinese billionaire Li Shufu who heads Volvo’s parent Geely Motors has built up a significant stake in Daimler AG. He is known to be keen on buying into technology in order to take on the battle with other auto majors.

However any potential tie-up may have to pass scrutiny since Daimler already has an existing relationship with BAIC, which is seen to be close to the Chinese government.

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