Mercedes-Benz and Zhejiang Geely Holding Group (Geely Holding) have formally established the global joint venture ‘smart Automobile Co’ for the Smart brand after receiving the regulatory approvals.
The total registered capital of the JV will be 5.4 billion RMB (Rs 5,600 crore) to transform Smart into a leading player in the premium and intelligent electrified vehicles segment. Both parties will equally contribute 2.7 billion RMB, the share of Mercedes-Benz AG will be mainly covered by the contribution of the Smart brand. The global headquarters of the new joint venture has been 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 premium pure-electric and connected vehicles.
The board of directors of the new Smart JV 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 and 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 Cong Hui; 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 aftersales. Tong has more than two decades of experience in the automotive industry. Before joining the smart joint venture, he has worked for global automotive manufacturers, both in the United States and in China.
Ola Källenius, chairman of the board of management of Daimler AG and Mercedes-Benz AG, said: “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.”
Li Shufu, Geely Holding chairman said: “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.”