- The Kuwait Investment Authority has been a shareholder of Daimler for the past 40 years
- Partnership underscored at a ceremony featuring around 100 guests
- His Highness Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah, the Prime Minister of the State of Kuwait: “Our celebration today reflects the concept of successful economic partnership, and clearly demonstrates the astuteness of the State of Kuwait in seeking to invest financial surplus in long term investments to assist future generations in facing the future confidently and with resolve.”
- Manfred Bischoff, Chairman of the Supervisory Board of Daimler AG: “During the last 40 years, Kuwait became Daimler’s most reliable partner despite all ups and downs in corporate history. We are grateful and deeply honored to have an outstandingly reliable partner who is willing to shape a bright future for Daimler together with us.”
- His Excellency Anas K. Al-Saleh, the Minister of Finance of the State of Kuwait and Chairman of the Board of the Kuwait Investment Authority: “Over the past 40 years, Kuwait has been a shareholder in Daimler even during Daimler’s difficult days as we never lost faith in the brilliance of our common company.”
- Partnership of Daimler and the Kuwait Investment Authority is built on mutual trust
- The Kuwait Investment Authority will continue to increase its investment in Germany
Stuttgart (Germany) – On Thursday, Daimler AG and the State of Kuwait’s sovereign wealth fund, the Kuwait Investment Authority (KIA), underscored their 40-year partnership at a festive ceremony. “During the last 40 years, Kuwait became Daimler’s most reliable partner despite all ups and downs in corporate history,” Dr. Manfred Bischoff, Chairman of the Supervisory Board of Daimler AG, told the around 100 invited guests at the Mercedes-Benz Museum in Stuttgart. “We are grateful and deeply honored to have an outstandingly reliable partner who is willing to shape a bright future for Daimler together with us.”
In November 1974, the Kuwait Investment Authority acquired an equity stake of the former Daimler-Benz AG from the Quandt Group. The shares accounted for about 14 percent of the company’s equity at the time. The Kuwait Investment Authority is currently Daimler’s single biggest shareholder, holding 6.8 percent of the company’s shares since the demerger of Daimler and Chrysler took place in 2007. Daimler shares are well distributed on an international base.
His Highness Sheikh Jaber Al-Mubarak Al-Hamad Al-Sabah, the Prime Minister of the State of Kuwait said: “Our celebration today reflects the concept of successful economic partnership, and clearly demonstrates the astuteness of the State of Kuwait in seeking to invest financial surplus in long term investments to assist future generations in facing the future confidently and with resolve. Investing in well-established Daimler AG, one of Germany’s and the world’s most important companies, is the ideal means of realizing that vision.”
Dr. Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, thanked the Kuwait Investment Authority for its four decade-long loyalty as a strategic Daimler investor. “In the past 40 years the Kuwait Investment Authority has backed our decisions, has given us room to maneuver and the freedom to move forward,” said Dr. Zetsche. “I’d like to express my sincere and heartfelt thanks to the Kuwait Investment Authority for your trust, friendship and visionary power over the past 40 years.”
His Excellency Anas K. Al-Saleh, the Minister of Finance of the State of Kuwait and Chairman of the Board of the Kuwait Investment Authority said: “Over the past 40 years, the Kuwait Investment Authority has been a shareholder in Daimler even during Daimler’s difficult days as we never lost faith in the brilliance of our common company.” The stake that was originally purchased for $329 million has since then grown in value to almost $6 billion.
“The Kuwait Investment Authority always believed in the prospects of Germany,” added His Excellency Al-Saleh. “The Kuwait Investment Authority considers Germany to be an anchor economy.” The sovereign wealth fund sees itself as a responsible, long-term oriented investor, whose holdings create and secure large numbers of jobs in Germany. “The only way forward for our two countries is to further strengthen our relationship. The Kuwait Investment Authority will continue to increase its investment in Germany.”
Daimler and the Kuwait Investment Authority share the passion for top automotive products. The visionary power of the entrepreneurs and automobile inventors Carl Benz and Gottlieb Daimler still enlivens the company’s culture. In the past four decades, Daimler has set standards in vehicle safety with the introduction of the anti-lock braking system (ABS), the airbag, and the Electronic Stability Program (ESP), as well as with driver assistance systems for cars and commercial vehicles. Daimler established with car2go the station-independent carsharing system and plays a decisive role in the development of autonomous driving as the technology leader.
“At Daimler, strategic decisions are being taken exactly in line with the long-term interests of our partners such as the State of Kuwait. Daimler’s supervisory board feels a special responsibility towards all stakeholders who entrust the company parts of their resources over a long time horizon. Thus, all corporate acting is shaped by Daimler’s fiduciary duty to create value in the long-run,” explained Dr. Bischoff.
“Today, we are stronger than ever before. We are posting record sales figures, have the world’s most valuable premium passenger car brand and are the world’s leading global commercial vehicle manufacturer,” stated Dr. Zetsche. “Our success is the success of our shareholders. We are very proud to count on the Kuwait Investment Authority as strategic investor with whom we share visionary power,” said Dr. Zetsche. “Our finest days are yet to come. Together we will shape the future of mobility, we work hard to make the vision of accident-free driving a reality and we are looking forward to further develop the automotive industry.”
In 1974, the former Daimler-Benz AG had revenues of approximately €8 billion, employed 150,000 people, and sold almost 550,000 vehicles. 40 years later, Daimler has around 276,000 employees and is aiming to sell more than 2.4 million vehicles. Revenues will probably total over €120 billion by the end of the year. The company’s value has increased sustainably during this period. All in all, Daimler sold around 33 million cars over the past 40 years and posted profits of more than €70 billion. A large part of these profits has been passed on to the shareholders in the form of dividends.
At the ceremony titled »40 Years of Future«, Günther Oettinger, Vice President of the European Commission for Energy, held a speech in which he highlighted the importance of the investment of the Kuwait Investment Authority in Daimler AG: “In 1974, Kuwait made a wise and foresightful decision to invest in Daimler. The partnership makes clear, how to use precious oil reserves more efficiently and to delevop alternative powertrains for the future simultaneously. The successful strategic partnership between Daimler and Kuwait could – as a microcosmos – be an example regarding the future development of the partnership between Kuwait and the EU in terms of energy: We are interested to work together regarding a more efficient future oil drilling and the use of more renewable energy sources.”
The Kuwait Investment Authority was founded in 1953 and is the world’s oldest sovereign wealth fund. The State of Kuwait’s sovereign wealth fund is one of the world’s largest institutional investors and has invested almost $18 billion in Germany. The State of Kuwait has around three million inhabitants and is Daimler’s fastest-growing market in the Middle East.