Daimler forms joint venture with Geely to develop electric cars in China

By Sean Galea-Pace
The Germany-based automotive manufacturer, Daimler, is set to develop its next generation of Smart electric cars in China following a joint venture with...

The Germany-based automotive manufacturer, Daimler, is set to develop its next generation of Smart electric cars in China following a joint venture with Geely, according to Reuters.

On Thursday (28 March), Daimler confirmed it would develop the next generation of Smart-branded city cars at a purpose-built factory in China as it planned to share its expertise in manufacturing, engineering and design with Geely.

Under the agreement, the next generation of Smart cars are set to be assembled at a Chinese plant, with sales expected to begin in 2022.

According to CNN Business, CEO Dieter Zetsche wrote in a blog: “Our smallest vehicle still has huge potential – in China and beyond. Geely is the right partner to take advantage of these opportunities.”

SEE ALSO:

It is expected that Daimler and Geely will each own 50% of the global joint venture with financial terms of the deal left undisclosed.

Due to the high cost of electric car batteries making it more difficult for automakers to develop affordable zero-emission vehicles, it has led to a number of them forming alliances with Chinese partners.

The news follows Daimler’s competitors BMW unveiling plans to develop Minis in China with low production costs and the demand in small electric cars increasing.

Share

Featured Articles

5 minutes with: Simon Michie, Pulsant CTO

Simon Michie, CTO at Pulsant, explains why edge computing will transform manufacturing operations, but success will depend on having partnerships in place

Microsoft’s Çağlayan Arkan explores the supply chain

Çağlayan Arkan, Microsoft’s VP Global Strategy & Sales Lead for Manufacturing & Supply Chain, gives his take on digital factories and ‘the art of possible’

Elisabeth Brinton on the Microsoft Cloud for Sustainability

Microsoft’s Elisabeth Brinton discusses the Microsoft Cloud for Sustainability programme & how manufacturers are being supported by their new technology

Aiimi’s Head of Solution Engineering Matt Eustace on risks

AI & Automation

5 minutes with Nicolai Peitersen, co-founder of Wikifactory

Procurement & Supply Chain

Three steps to building a resilient enterprise ecosystem

Procurement & Supply Chain