Hangzhou – Mercedes-Benz and Zhejiang Geely Holding Group (Geely), officially announced their cooperation to establish a joint venture that will develop electric vehicles.
The joint venture, named Smart Automobile, will later produce premium electric cars with the latest technology. Smart is a brand under Daimler.
Mercedes-Benz & Geely Collaborate to Develop Electric Cars
In the new company, Geely will later be responsible for car engineering while Mercedes-Benz takes care of the overall appearance.
In its official statement, the two companies agreed to invest 2.7 billion Yuan each, or equivalent to Rp 5.3 trillion.
The joint venture has a 50:50 ownership composition, which will be headquartered in Hangzhou Bay, China. As for the market, the two companies agreed that their products would be sold to China and Germany.
Each company will place three executives on the board of directors, with Tong Xiangbei of Geely who will occupy the company’s global CEO chair.
As information, before Mercedes and Geely collaborated, Great Wall Motor and BMW had already formed a joint venture, to build a Chinese brand of electric vehicles powered by China.
The country is now a destination for many future car development, including electric cars. Because the demand for electric-powered cars in the country continues to show an increase.