Daimler and Geely Holding form global joint venture to develop Smart
Daimler AG and Zhejiang Geely Holding Group, the German and Chinese automotive groups, announced the formation of a 50-50 globally focused joint venture to own, operate, and further develop Smart as premium-electrified vehicles. Under the joint venture agreement, new Smart electric models will be assembled at a new purpose-built electric car factory in China with global sales due to begin in 2022.
Dieter Zetsche, Chairman of the Board of Management of Daimler AG and Head of Mercedes-Benz Cars, said, “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.”
Li Shufu, Geely Holding chairman, added, “We fully respect the value of Smart. This brand has a unique appeal and strong commercial value. Geely Holding and Daimler look forward to this challenging and exciting new project, through which we will further push the introduction of premium electric products to give a better mobility experience to our customers. As equal partners, we are dedicated to promoting the Smart brand globally; we will leverage our experience and global competencies in brand management, R&D, manufacturing, supply chain management, and other areas. The synergies from this cooperation will lead to mutual benefits; at the same time we will further develop technologies for Smart including connectivity, to continue to lead in the industry as it undergoes a wider transformation.”
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, Geely Holding Executive Vice President and CFO Daniel Donghui Li.
The new generation of Smart vehicles will be styled by the Mercedes-Benz Design network with engineering from Geely 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 onward, 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).
The joint venture is expected to be finalized by the end of 2019.