Automotive News   |   Automotive News Europe   |   Autoweek   |   Automobilwoche

Automotive News China Newsletter
Register our free newsletter, sent each Monday and Thursday

     Automakers   Suppliers   Auto Show   Comment   Car Cutaway   Newsletters   Press Releases   Register for Newsletter
  Contact Us:   Editorial   Advertising   Subscription Information   |   About Us   Media Kit
Home >> Automaker Email this story   Print this story
 
Daimler to recast Smart with Geely as China-based EV brand
Reuters | 2019/3/29

BEIJING -- Daimler will build its next generation of Smart electric vehicles in China through a joint venture with Geely as a way to increase economies of scale in a market segment that is struggling to turn a profit.

China's Geely built a stake of almost 10 percent in Daimler last year, saying it wanted to forge an alliance to develop electric and self-driving vehicles to better compete with new competitors such as Uber and Google.

Daimler said Thursday it would build the next generation of Smart-branded city cars at a purpose-built factory in China, and planned to share its expertise in manufacturing, engineering and design with Geely.

The high cost of EV batteries has made it hard for automakers to build affordable zero-emissions vehicles, leading several of them to strike alliances with Chinese partners.

Daimler's German rival BMW recently unveiled plans to build electric Minis in China, where production costs are low and demand for small electric cars is rising.

Daimler and Geely did not disclose financial terms of the deal. The details of the joint venture will be finalized by the end of 2019, they said in a joint statement.

Daimler develops and builds Smart cars with Renault, and constructs the small vehicles at factories in France and Slovenia.

The Daimler factory in Hambach, France, will be retooled to build Mercedes-Benz cars, it said.

Geely has been expanding rapidly through mergers and acquisitions since 2010, when it acquired Swedish carmaker Volvo from Ford Motor Co. Last year, Daimler and Geely set up a ride-hailing joint venture in China.

Daimler CEO Dieter Zetsche said last month the German carmaker was in talks to deepen its alliance with Geely after the Chinese's group's chairman Li Shufu bought a 9.69 percent stake in Daimler in 2018.

Related Stories
  • Karma to launch China sales in second half
  •     --Published:2019/19/4
     
  • Daimler suspends Mercedes franchise after customer complaint goes viral
  •     --Published:2019/19/4
     
  • Toyota sells EV tech to Chinese startup Singulato
  •     --Published:2019/16/4
     
  • VW plans Tesla-fighting electric crossover
  •     --Published:2019/16/4
     
  • Automotive Energy Supply targets EV makers with first China battery plant
  •     --Published:2019/16/4
     
  • China's $18 billion EV bubble at risk of bursting
  •     --Published:2019/16/4
     
  • Geely launches electric vehicle brand Geometry
  •     --Published:2019/12/4
     
  • Volvo explores closer ties with shareholder Geely in China
  •     --Published:2019/12/4
     
  • Geely, Great Wall, BYD sales climb in March
  •     --Published:2019/12/4
     
  • Geely breaks ground in Wuhan for Lotus factory
  •     --Published:2019/9/4
     
  • China EV startup Bordrin skips flash, keeps real-car focus
  •     --Published:2019/9/4
     
  • U.S., in new EV supply chain push, sets sights on China
  •     --Published:2019/9/4
     
  • Daimler, BMW to limit scope of venture to affordable China EV, report says
  •     --Published:2019/5/4
     
  • Chinese brands, unfazed by lower subsidies, prep more EVs
  •     --Published:2019/5/4
     
     

    Our Newsletter Editions
    Automotive News China produces two email newsletters each week. You can sort your news by the articles highlighted in each of our newsletters here.

    Select your newsletter     

     
     

    Automotive News China
    Room 1303, Building 2, Lane 99, South Hongcao Road,
    Shanghai 200233
    Telephone: 86-139-1851-5816
    Fax: 86-21-6495-0895
     
    Home | Help Center | About Us | Privacy Policy | RSS
    Entire contents © Crain Communications, Inc.
    Use of editorial content without permission is strictly prohibited. All Rights Reserved.
    ICP06057291