FRANKFURT/BEIJING - Daimler will build its next generation of Smart electric cars in China through a joint venture with Geely, as a way to increase economies of scale in a market segment that is struggling to turn a profit.
China’s Geely built a stake of almost 10 percent in Daimler last year, saying it wanted to forge an alliance to develop electric and self-driving cars to better compete against new competitors such as Uber and Google. The high cost of electric car batteries has made it hard for automakers to build affordable zero-emissions vehicles, leading several of them to strike alliances with Chinese partners.
Daimler and Geely did not disclose financial terms of their deal. The details of the joint venture will be finalised by the end of 2019, they said in a joint press release.
RT : Daimler to develop Smart brand together with Geely