Mercedes-Benz AG, Geely Holding Establishes Latest Venture
Mercedes-Benz AG (Mercedes-Benz) and Zhejiang Geely Holding Group (Geely Holding) announced that they have formally established the global joint venture “Smart Automobile Co., Ltd.” for the Smart brand, after receiving the regulatory approvals.
The joint venture has a total registered capital of 5.4 billion RMB (Php 39.436 billion). This, to transform Smart into a leading player in premium and intelligent electrified vehicles. Both parties will equally contribute 2.7 billion RMB (Php 19.718 billion).
Mercedes-Benz AG’s share will be mainly covered by the contribution of the Smart brand. The global headquarters of the new joint venture was set in Hangzhou Bay, Ningbo with operational sales functions based in China and Germany.
The new generation of Smart vehicles will be designed by the worldwide Mercedes-Benz Design network and developed by the Geely global engineering network. Future production will be located in China.
As part of the vehicle-development program, the Smart product portfolio will be extended into the fast-growing B-segment that are in line with Smart’s brand positioning with a focus on pure premium electric and connected vehicles.
The board of directors of the new Smart joint venture will be made up of six executives with equal representation from both parties. Daimler AG board representatives will include Hubertus Troska, Member of the Board of Management of Daimler AG responsible for Greater China, Britta Seeger, Member of the Board of Management of Daimler AG and Mercedes-Benz AG responsible for Marketing & Sales, and Markus Schäfer, Member of the Board of Management of Daimler AG and Mercedes-Benz AG responsible for Group Research and Mercedes-Benz Cars Development.
Geely board representatives will include Geely Holding Chairman Li Shufu, Geely Holding President, Geely Auto Group President and CEO An Conghui, Geely Holding Executive Vice President and CFO Daniel Donghui Li.
Tong Xiangbei has been appointed the new global CEO of the Smart joint venture and will oversee all operations relating to the brand including sales, marketing, R&D, production, and after-sales. Tong has more than two decades of experience in the automotive industry. Before joining the Smart joint venture, he has worked for global automotive OEMs both in the United States and in China.
Ola Källenius, Chairman of the Board of Management of Daimler AG and Mercedes-Benz AG, expressed excitement over the upcoming venture.
“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.”
For their part, Li Shufu, Geely Holding Chairman said shared sentiments with German brand's top honcho.
“The Smart brand has a unique value and global influence, it has grown to be a leader in urban mobility. Geely Holding will fully support the Smart brand with its full advantages in R&D, manufacturing, supply chain and other fields into the joint venture and support its development in China and globally. 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.”