This archive report was first published on 11 January 2020.
On January 11, 2020, Mercedes-Benz announced a partnership with Zhejiang Geely Holding Group to build Smart-branded electric cars in the Chinese city of Xi'an. The base, with an annual capacity of around 150,000 vehicles, will be built in collaboration with Geely.
According to Leng Yan, Executive Vice President in China at Daimler AG, the German parent company of Mercedes-Benz, the partnership aims to produce 'premium and intelligent electrified' vehicles under the Smart brand. Geely and Mercedes-Benz will each invest 2.7 billion yuan ($388.8 million) in the China-based venture.
Geely, which holds a 9.7 per cent stake in Daimler, is building car plants in Xi'an, as per construction bidding documents on its website. The firms initially announced the partnership on Wednesday, stating that the venture will have manufacturing capacity in China and sales operations in China and Germany.
Smart delivered about 116,800 vehicles worldwide in 2019, according to Daimler's January 9 statement. The partnership marks a significant expansion of Geely's presence in the Chinese market, where it is building car plants in various locations.
