German automotive giant Mercedes-Benz has joined forces by signing an important partnership agreement with Chinese carmaker Geely. The two companies, which will invest a total of $780m with a 50/50 joint capital, will aim to produce electric cars.
Mercedes-Benz and Geelywill target the German and Chinese markets for their cars to create. The vehicle’s platform will be built on Mercedes-Benz’s compact car brand smart. As you know, a few years ago, Mercedes-Benz started to offer its smart cars electricly, but found no interest in the U.S. market. The vehicles in this segment, which will be mostly referred to as urban cars, will also have luxury items in them, even though they are small in size.
The two companies, which will invest a total of $780 million, want to achieve success, especially in China and Germany, by building the electric car on a small smart car. Mercedes-Benz will use China’s experience in electric motors; Geely will use the smart brand, which is well known worldwide and has a good brand value. With the agreement, which allowed all regulator sourcing, it established a major consortium between Germany and China.
smart Automobile Co., Ltd. Two giant brands, which will form a new company under the name, are expected to launch their first fully electric cars in 2022. Tong Xiangbei was the head of the new partnership. Xiangbei joined geely’s team in 2015 and has been working in the automotive industry for 24 years. The company’s six-member board of directors will be staffed by Mercedes-Benz and three by Geely.