Automotive powerhouses Mercedes-Benz and Geely have formally established the global joint venture “smart Automobile Co., Ltd.” for the smart brand. Each company will contribute 2.7 billion RMB in capital.

The new JV, headquartered in Hangzhou Bay, China, will design the new vehicles using the Mercedes-Benz Design network, while Geely Holding will be responsible for development and engineering. The primary focus will be on extending the smart portfolio to include premium, electric and connected vehicles. Production will be located in China.

“The joint venture will bring the next generation of zero-emission smart cars to the Chinese and global markets,” said Ola Källenius, Chairman of the Board of Daimler and Mercedes.

Li Shufu, Chairman at Geely Holding, said, “We will work together with Mercedes-Benz to transform the smart brand into a leading player in urban premium, electric and connected vehicles to successfully develop the brand’s global potential.”

Source: Daimler