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Daimler and Geely Holding form global JV for smart; new generation of electric models

Daimler AG and Zhejiang Geely Holding Group , the German and Chinese automotive groups, have formed a 50-50 globally focused joint venture to own, operate and further develop smart, the pioneer of small urban vehicles, as a leader in premium-electrified vehicles.

Under the joint venture agreement, a new generation of smart electric models will be assembled at a new purpose-built electric car factory in China with global sales due to begin in 2022.

For more than 2.2 million customers, smart represents a pioneer in urban mobility. Based on this success story, we look forward to further enhancing the brand with Geely Holding, a strong partner in the electric vehicle segment. We will jointly design and develop the next generation of smart electric cars that combine high-quality production and known safety standards for sale both in China and globally. In the future, we are looking forward to working with all partners to sustain our success in China and worldwide. Separately, Mercedes-Benz will produce a compact electric vehicle at the Hambach plant, sustaining employment with further investment in the facility.

—Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars

The board of directors of the new smart joint venture will be made up of six executives with equal representation from both parties. Daimler AG board representatives will include Hubertus Troska, Daimler AG Board of Management member responsible for Greater China; Britta Seeger, Daimler AG Board of Management member responsible for Marketing and Sales of Mercedes-Benz Cars; and Markus Schäfer, Member of the Divisional Board of Management of Mercedes-Benz Cars, Production and Supply Chain and designated Board of Management Member responsible for Group Research and Mercedes-Benz Cars Development. Geely board representatives will include Geely Holding Chairman Li Shufu; Geely Holding President, Geely Auto Group President and CEO An Conghui; and Geely Holding Executive Vice President and CFO Daniel Donghui Li.

The joint venture partners have agreed that the new generation of smart vehicles will be styled by the worldwide Mercedes-Benz Design network with engineering from Geely global engineering centers. Future production will be located in China.

As part of the vehicle-development program, the smart product portfolio is also planned to be extended into the fast-growing B-segment.

Prior to the launch of new models from 2022 onwards, Daimler will continue to produce the current generation of smart vehicles in its Hambach plant France (smart EQ fortwo) and at Novo Mesto (Slovenia, smart EQ forfour).

In parallel, the Hambach plant will assume an additional new role in the Mercedes-Benz Cars production network and will produce a compact electric vehicle by Mercedes-Benz under the new product and technology brand EQ in the future. Mercedes-Benz is investing €500 million on the Hambach plant.

The joint venture is expected to be finalized by the end of 2019. Financial terms of the smart joint venture have not been disclosed.

This joint venture follows the separate agreement between Daimler Mobility Services and Geely Technology Group announced last year, in which the companies agreed to cooperate on a new premium ride-hailing service in China.

Comments

HarveyD

Very smart of Mercedes to have Geely (China) produce lower cost EVs in China, for local and export markets.

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