The joint venture will become operational by the end of the year and will be headed by six executives, three from each of the two companies. The financial details of the deal were not disclosed.
According to the limited details provided, smart will become an all-electric brand, as originally intended by the Germans. Mercedes will handle the styling of the cars, and Geely will be in charge of engineering.
Production of jointly-developed vehicles will commence at a new purpose-built electric car factory in China in 2022. As soon as that happens, smart will move into the B-segment with a new smart model.
The current smart facility in Hambach, France, will continue to produce smart vehicles in the form of the EQ fortwo until the new models are launched. The facility will also be equipped to produce one of the other electric EQ models currently in development at Mercedes.
“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,” said in a statement Dieter Zetsche, Daimler member of the board.
“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.”
The collaboration between the two companies is not the first tie-up between them. Last year, Geely and Daimler’s Mobility Division began working on a new premium ride-hailing service in China.
Geely also became Daimler’s largest single shareholder in early 2018, after buying a 9.67 percent share in the company.
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