Geely, Mercedes-Benz Launch $780 Million JV to Make Electric Smart-Branded Cars
January 9, 2020 | ReutersEstimated reading time: 1 minute
Zhejiang Geely Holding Group Co Ltd and Mercedes-Benz on Wednesday said they would each invest 2.7 billion yuan ($388.77 million) in a China-based venture to build “premium and intelligent electrified” vehicles under the smart brand.
The 50:50 venture has received regulatory approval and will be based in the Chinese coastal city of Ningbo, the Chinese and German automakers said in a statement. Like Mercedes-Benz, smart is a Daimler AG marque.
The venture will have manufacturing capacity in China and sales operations in China and Germany, the automakers said. Geely will lead in engineering the cars while Mercedes-Benz will take charge of their overall look, they said.
The partners will each have three executives on the board of directors, with Geely’s Tong Xiangbei becoming the venture’s global chief executive.
Geely has expanded rapidly through mergers and acquisitions since buying Sweden’s Volvo in 2010 from U.S. parent Ford. In 2018, it built a stake of almost 9.7% in Daimler and set up a ride-hailing venture in China with the Stuttgart-based carmaker.
Its latest announcement comes just over a month after China’s Great Wall Motor Co Ltd and Germany’s BMW AG formed a venture to build electric Mini-branded cars in China, the world’s biggest market for electrified vehicles where demand for smaller EVs is on the rise.
Suggested Items
Management Change at Mycronic
03/19/2024 | MycronicAs a result of the preparations ahead of a possible listing of Axxon on a stock exchange in China, effective March 19, 2024, Ivan Li leaves Mycronic’s executive management but remains as Head of Axxon, the core of Mycronic´s High Volume division.
IMI China (Jiaxing) Receives Five Invention Patent Awards
03/13/2024 | IMIIntegrated Micro-Electronics, Inc. (IMI), China (Jiaxing) Test and Systems Development (TSD) team recently received five National Invention Patent awards from the China National Intellectual Property Administration (CNIPA).
GPV's Site Engagement Meeting in Asia
03/12/2024 | GPVDuring this week, the GPV Executive Leadership Team conducted the first in a row of Site Engagement Meetings to take place during spring 2024.
Nordson to Demonstrate Plasma Treatment, Automated Fluid Dispensing Systems at SEMICON China 2024
03/06/2024 | Nordson Electronics SolutionsNordson Electronics Solutions, a global leader in reliable electronics manufacturing technologies, will demonstrate their latest equipment for semiconductor manufacturing at SEMICON China 2024, booth 3645.
Global Semiconductor Sales Increase 15.2% Year-to-Year in January
03/05/2024 | SIAThe Semiconductor Industry Association (SIA) announced global semiconductor industry sales totaled $47.6 billion during the month of January 2024, an increase of 15.2% compared to the January 2023 total of $41.3 billion but a decrease of 2.1% from the December 2023 total of $48.7 billion.