Do you want to avoid supporting Elon Musk, the USA or China? The truth is that it is almost impossible, as the biggest car brands in the world are owned by private equity funds, sovereign wealth funds and investors from all over the world.
Buying a car is not just about design, driving characteristics and price. It is also a major economic decision that indirectly supports various companies and investors around the world.
But did you know that even if you choose a seemingly German, Swedish or Japanese car, part of your money could still end up in China, the USA or the Middle East?
The automotive industry has a very confusing family tree. The past few decades have seen countless mergers, acquisitions, bankruptcies, and restructurings, making it almost impossible for consumers to keep track of who owns which car brands. Many car brands have been sold to new owners, some have been closed down, and new companies have emerged.
Historic brands like Pontiac, Oldsmobile and Mercury have disappeared, while others – like Chrysler, Jaguar and Volvo – have now found new owners outside their country of origin.
For some car owners, it's important to choose a car that fits their values. Especially today, when Elon Musk's political involvement in the United States has made many frown on Tesla.
Who is behind the biggest car brands in the world?
Some therefore want to support European industry, while others simply want to avoid investing in controversial companies or regimes.
But the reality is that the car market is so globalized that it is almost impossible to avoid your money ending up with either large private equity funds, state-run investment companies, or governments in countries with questionable human rights records.
China, for example, is a communist regime with a highly centralized economy, where state-owned companies and investment funds play a major role in business. Qatar, which also owns large stakes in the automotive industry, is known for its human rights problems and lack of democratic reforms.
And if you opt out of Tesla to avoid Elon Musk, you could still end up backing companies with close ties to either huge US private equity funds or the Chinese government. So which is better – or worse?
Many car brands are still run from their country of origin, but the ownership tells a completely different story. Here are some of the largest car manufacturers in the world – and who they are co-owned by:
Volkswagen Group (Germany)
- Brands: Volkswagen, Audi, Porsche, Lamborghini, Bentley, Bugatti, Skoda, SEAT
- Notable owners:
- Porsche Automobil Holding SE (31.4%) – Germany
- Qatar Holding LLC (10%) – Qatar
- BlackRock, Inc. (2.1%) – United States
Toyota Motor Corporation (Japan)
- Brands: Toyota, Lexus, Daihatsu
- Notable owners:
- Toyota Industries Corporation (9.13%) – Japan
- JPMorgan Chase & Co. (4.21%) – United States
- BlackRock, Inc. (2.56%) – United States
Stellantis NV (Netherlands/France/Italy)
- Brands: Peugeot, Citroën, Opel, Vauxhall, Fiat, Chrysler, Jeep, Dodge, Ram
- Notable owners:
- Giovanni Agnelli BV (15.6%) – Italy
- BPI France (6.69%) – France (state-owned bank)
- BlackRock, Inc. (3.52%) – United States
Mercedes-Benz Group AG (Germany)
- Brands: Mercedes-Benz, Smart
- Notable owners:
- Beijing State-Owned Capital Management Company (11.2%) – China
- Kuwait Investment Authority (6.27%) – Kuwait
- BlackRock, Inc. (5.14%) – United States
Ford Motor Company (USA)
- Brands: Ford, Lincoln
- Notable owners:
- Vanguard Group (10.1%) – USA
- BlackRock, Inc. (7.37%) – United States
- Norges Bank Investment Management (0.99%) – Norway
General Motors (USA)
- Brands: Chevrolet, GMC, Cadillac, Buick
- Notable owners:
- BlackRock, Inc. (9.93%) – United States
- Vanguard Group (9.34%) – USA
- State Street Corporation (5.35%) – USA
Honda Motor Co. Ltd. (Japan)
- Brands: Honda, Acura
- Notable owners:
- Nomura Asset Management – Japan
- BlackRock Fund Advisors – USA
- AXA SA – France
Tesla Motors (USA)
- Brands: Tesla Model S, Model 3, Model X, Model Y, Cybertruck
- Notable owners:
- Elon Musk (12.77%) – USA
- Vanguard Group (7.56%) – USA
- BlackRock Advisors LLC (4.78%) – USA
Nissan Motor Co. Ltd. (Japan)
- Brands: Nissan, Infiniti, Datsun
- Notable owners:
- Renault SA (35.71%) – France
- Mercedes-Benz Group AG (2.7%) – Germany
- Effissimo Capital Management – Singapore
BYD Co. Ltd. (China)
- Brands: BYD electric cars
- Notable owners:
- Berkshire Hathaway, Inc. (4.93%) – United States
- BlackRock Fund Advisors – USA
- China Asset Management Co., Ltd. – China
But what about the good old Swedes on the other side of the strait – can't Volvo offer something Scandinavian? Scandinavian design, yes. And offices in Sweden, yes. But Volvo and including Polestar also have their feet firmly planted in China.
- Volvo is 78.65% owned by Chinese Geely.
- Polestar is owned by Geely and Volvo, which in turn is controlled by China.
Difficult to avoid controversial owners
No matter which car brand you choose, it is almost impossible to avoid the possibility that your money could potentially end up with Chinese companies, Middle Eastern investment funds, or American asset managers.
The car market is global, and money knows no bounds. So the next time you're considering a new car, it might be worth investigating who's really behind the brand you're choosing.
