On Wednesday, Mercedes-Benz and Zhejiang Geely Holding Group Co Ltd stated, they would each invest $388.77 million (2.7 billion yuan) in a China-based venture to build “premium and intelligent electrified” vehicles under the smart brand.
The 50:50 joint venture has already got regulatory approval and will be based in the Chinese coastal city of Ningbo, said the two automakers in a statement.
The joint venture will see them manufacture in China, and sold in China as well as Germany, said the automakers. While Geely will be in charge of engineering, Mercedes-Benz will take charge of the overall look.
Following Geely’s acquisition of Sweden’s Volvo from Ford in 2010, the Chinese carmaker has expanded rapidly. In 2018, it built a stake of almost 9.7% in Daimler and set up a ride-hailing venture in China with the Stuttgart-based carmaker.