50-50 joint-venture split includes new Chinese production facility.
Working very quickly to bring it to fruition, it seems that German concern Daimler and Chinese automaker Geely have come to an agreement over the future of the smart microcar brand, and have agreed to move into a joint venture that’ll see the loss-making marque make a full-throttle comeback by 2022. The announcement today comes wth the formation of a globally-focused joint venture, albeit with significant Chinese interests.
We say that because while smart will be relaunched as a global contender, its primary focus is the Chinese market. This is for good reason – with Beijing adopting an EV-friendly stance, particularly in urban areas, China has become the number 1 market for electric vehicles. Such is the potential envisioned for smart that the German-Chinese joint-venture will also call for the construction of a new production facility specifically for it, for local consumption as well as for export.
“For more than 2.2-million customers, smart represents a pioneer in urban mobility. Based on this, we look forward to further enhancing the brand with Geely Holdings, a strong partner in the EV segment. We will jointly design & develop the next-generation of smart EVs that combine high-quality production & known safety standards for sale both in China and globally.” – Dr. Dieter Zetsche, Chairman of the Board of Management, Daimler AG
“We fully respect the value of smart. As equal partners, we are dedicated to promoting the smart brand globally. We will leverage our experience & global competencies in brand management, R&D, manufacturing, supply chain management and other areas. The synergies from this cooperation will lead to mutual benefits, and at the same time we will further develop technologies for smart including connectivity, to continue to lead the industry as it undergoes a wider transformation.” – Li Shufu, Chairman & Founder, Geely Holdings
With smart having evolved into a full-EV brand in North America in 2017 and a similar transformation planned for Europe by 2020, the company has reiterated its commitment to continue building its current generation of fortwo and forfour models in its French & Slovenian facilities. After that, new models are planned for 2022, when the facility in China comes online.
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