Daimler (DAI.ETR) and Beijing Automotive Group on Tuesday signed an agreement that will see the German company take a 12% equity stake in Beijing Auto’s passenger-car unit and two seats on the board, Reuters reported. The maker of Mercedes-Benz cars hopes closer co-operation with its state-owned local partner will help mend relations with its sales network that were fractured, according to dealership sources, during an overzealous drive to boost sales that hurt retailers’ profitability. Daimler said it would pay US$845.3 million for the stake.