(Yicai Global) Jan. 9 – Chinese automaker Zhejiang Geely Holding Group and Germany's Mercedes-Benz have formed a joint venture, Smart Automobile, the two firms announced yesterday.
The pair will jointly produce the pure battery electric vehicle Smart with Mercedes-Benz overseeing vehicle design and Geely responsible for research and development, per the plan, and the vehicle line will be produced in a brand-new Chinese plant whose output is expected to be sold globally in 2022.
The JV has a registered capital of CNY5.4 billion (USD777.5 million). with each company holding a 50 percent stake, the announcement stated, adding Geely and Mercedes-Benz under Daimler each will have three seats in the JV's board of directors among its total of six.
Based in the port of Ningbo in southeastern Zhejiang province, the JV will set up marketing headquarters both in Ningbo and in Stuttgart in southwestern Germany.
Smart pledged to achieve full electrification this year and Geely hopes 90 percent of its sales this year will come from electric vehicles. The company has also forged JVs with LG Chem and other battery makers.
Before Geely and Mercedes-Benz's JV, the Spotlight Automotive Project, a joint-venture project between Great Wall Motor and BMW, was approved to start in November and is expected to complete in 2022.
Editor: Ben Armour