Skip advert
Advertisement

Mercedes and Geely officially announce joint ownership of Smart brand

The £590 million equal-stake joint venture will see the pair launch a range of next-generation Smart electric vehicles from 2022

Smart EQ range

Geely has taken a 50 per cent stake in the Smart city car brand from parent company Daimler, it has been confirmed. The pair plan to build a new generation of all-electric Smart models by 2022, with production taking place at Geely’s purpose-built factory in China.

The next generation of Smart cars will be styled by Mercedes’s own design house, while the board will consist of six members with equal representation from both parties. The company’s global headquarters has been set in Ningbo, China with sales functions divided between China and Germany.

Advertisement - Article continues below

• Geely buys a 10 per cent stake in Daimler AG

As part of its expansion strategy, Mercedes and Geely also plan to extend Smart’s product portfolio into the rapidly-expanding B-segment, providing a premium all-electric rival for the Peugeot e-208, Renault ZOE and Volkswagen ID.3.

Until 2022, Daimler will continue to build the current Smart EQ ForTwo and EQ ForFour at its facilities in Hambach, France and Novo Mesto, Slovenia respectively. From 2022 Daimler’s Hambach plant will begin construction of a new EQ-branded compact electric car, following a €500 million investment by Mercedes-Benz.

Ola Källenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG, said: “Having received all necessary regulatory approvals we are now ready to start the joint venture with our partner Geely that has been in preparation for the past several months. 

“The joint venture will bring the next generation of zero-emission smart electric cars to the Chinese and global markets. We look forward to continue our collaboration to bring desirable products and services to customers around the world.”

Geely’s new partnership with Daimler Auto Group follows its recent £6.4 billion investment in the German company. Over the last decade, Geely has taken total financial control of Volvo, Polestar, the London Taxi Company, Lynk & Co and Yuan Cheng Auto, as well as partially financial control of Proton and Lotus.

What are your thoughts on Mercedes’s partnership with Geely? Let us know in the comments section below… 

Skip advert
Advertisement

Find a car with the experts

Skip advert
Advertisement

Recommended

Talking to you car? Mercedes agentic AI is coming and it wants to have a chat
Mercedes GLC - cabin

Talking to you car? Mercedes agentic AI is coming and it wants to have a chat

How drivers interact with their cars could be about to change according to Mercedes
News
16 Sep 2025
Massive in-car screens? You ain't seen nothing yet, says Mercedes
Mercedes GLC - interior

Massive in-car screens? You ain't seen nothing yet, says Mercedes

The Mercedes GLC’s jaw-dropping 99cm screen won’t be the last from the brand, but buttons won’t be totally banished
News
10 Sep 2025
Mercedes illuminated grilles here to stay as brand aligns EV and ICE design
Mercedes GLC - full front

Mercedes illuminated grilles here to stay as brand aligns EV and ICE design

The controversial face of Merc’s new electric GLC was a late-stage change in the development process
News
9 Sep 2025
What is Mercedes-AMG? Past, present and future of Mercedes' performance brand
Mercedes-AMG - header with Michael Schiebe

What is Mercedes-AMG? Past, present and future of Mercedes' performance brand

From the ‘Red Pig’ to the AMG XX concept, we find out what makes Mercedes’ performance division tick on a visit to AMG’s headquarters in Affalterbach
Features
25 Aug 2025

Most Popular

New Geely EX5 SUV to arrive in October, starting at £32k
Geely EX5 - front

New Geely EX5 SUV to arrive in October, starting at £32k

This new electric SUV is coming soon to the UK from Volvo and Lotus parent company, Geely
News
15 Sep 2025
Nissan Qashqai to finally go electric, but hybrid model will remain
Nissan Qashqai electric render Avarvarii - front 3/4

Nissan Qashqai to finally go electric, but hybrid model will remain

There will be an overlap of powertrains for the big-selling SUV
News
15 Sep 2025
Car Deal of the Day: Savour the Scandi cool of a Polestar 4 at only £334 a month
Polestar 4 - cornering, low shot

Car Deal of the Day: Savour the Scandi cool of a Polestar 4 at only £334 a month

Fancy something smart and sophisticated? You won’t look back with the Polestar 4. It’s our Deal of the Day for September 13
News
13 Sep 2025