German carmaker Daimler has decided to sell its remaining 7.5% stake in Airbus, the European aerospace giant formally known as EADS, and which is jointly owned by a number of European companies, represeting the UK, France, Germany and Spain.
Daimler who is responsible for
Mercedes-Benz has said that it will use its £2 billion proceeds of the sale to invest in its auto business and to pay shareholders dividends, in particular to counter the dominating German owned
Volkswagen Company that is now the world’s third largest automobile manufacturer.
Daimler was one of the founding companies in the formation of Airbus, as a number of European companies joined forces to counter the dominance of US giant Boeing. However many industry experts argue that Daimler’s involvement in Airbus has distracted its involvement in the auto business and has resulted in its rivals Audi and
BMW to overtake Mercedes-Benz. A German auto industry expert has said “It's better for Daimler to invest the money in the company's core business or to spend it to the benefit of the shareholders in the form of a dividend payment."