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.

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… 

Recommended

Mercedes-Maybach EQS SUV concept to be revealed at Munich Motor Show
Mercedes Maybach EQS SUV
Maybach

Mercedes-Maybach EQS SUV concept to be revealed at Munich Motor Show

Mercedes will unveil a new Maybach concept at Munich this year, which is expected to morph into flagship version of the upcoming EQS SUV
29 Jul 2021
New 2022 Mercedes EQS SUV spied in lighter camouflage
Mercedes EQS SUV
Mercedes

New 2022 Mercedes EQS SUV spied in lighter camouflage

Mercedes has announced the EQS SUV will make its debut next year – and there’s a Maybach version in the pipeline
28 Jul 2021
Smart teases new concept SUV ahead of Munich Motor Show debut
Smart SUV teaser above
Smart

Smart teases new concept SUV ahead of Munich Motor Show debut

Smart’s Munich Motor Show stand will feature a new crossover concept, which will morph into a rival for the MINI Countryman in 2023
28 Jul 2021
Mercedes confirms EQG electric G-Class for 2024 and Maybach EQS
Mercedes G-Class
Mercedes

Mercedes confirms EQG electric G-Class for 2024 and Maybach EQS

Mercedes will launch a pure-electric version of the G-Class in 2024, and there’s a Maybach-badged version of the EQS SUV in the pipeline
26 Jul 2021

Most Popular

New Dacia Duster facelift priced from £13,995
Dacia Duster facelift - front
Dacia Duster

New Dacia Duster facelift priced from £13,995

The Dacia Duster has been updated for 2021 with subtle design tweaks and a new eight-inch infotainment screen
2 Aug 2021
SEAT Ateca and Tarraco SUVs given small updates for 2021
SEAT Ateca
SEAT Ateca

SEAT Ateca and Tarraco SUVs given small updates for 2021

The SEAT Ateca and SEAT Tarraco get extra tech as standard and a range of cosmetic upgrades
3 Aug 2021
New Renault Kangoo 2021 review
Renault Kangoo Van - front
Renault Kangoo Van

New Renault Kangoo 2021 review

We get an early drive of the new Renault Kangoo van
3 Aug 2021