Mercedes-Benz and Geely Holding have formally established the Smart brand as a global joint venture.
The Smart Automobile Co. joint venture has a total registered capital of 5.4 billion RMB (A$1.144b, NZ$1.189b) to develop next-generation premium electric Smart vehicles, to be launched from 2022.
The German and Chinese automotive groups say the money will transform Smart into a leading player in premium and intelligent electrified vehicles.
Both parties will equally contribute 2.7 billion RMB (A$527 million, NZ$594.9m), Mercedes-Benz AG’s share mainly covered by the contribution of the Smart brand.
Global headquarters will be 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 in China. The Smart product portfolio will be extended into the fast-growing B-segment with a focus on pure premium electric and connected vehicles.
The Smart joint venture board of directors will comprise six executives with equal representation from both parties.
Daimler AG board representatives will include Hubertus Troska, Britta Seeger, and Markus Schäfer, while Geely board representatives will be Li Shufu, An Conghui, and Daniel Donghui Li.
Smart’s new global chief executive is Tong Xiangbei who will oversee all operations relating to the brand including sales, marketing, research and development, production and after sales. He has 20 years’ experience in the automotive industry.
“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,” Daimler AG and Mercedes-Benz AG management board chair Ola Källenius says.
“The joint venture will bring the next generation of zero-emission Smart electric cars to the Chinese and global markets.”
Geely Holding chair Li Shufu says it will fully support the Smart brand with its R&D, manufacturing, supply chain and expertise in other fields.
EVtalk reported Geely’s move to become Daimler AG’s top shareholder in February 2018.
