FRANKFURT/Beijing (Reuters)-
Daimler will build the next generation of smart electric vehicles in China through a joint venture with Geely to boost economies of scale in difficult-to-profit segments.
Last year, China's Geely, which owns nearly 10% of Daimler, said it hopes to form an alliance to develop electric vehicles.
Driving a car better competes with new competitors such as Uber and Google.
Daimler said Thursday it will build the next generation of smart cars.
Purposeful brand city car
Build factories in China and plan to share its expertise in manufacturing, engineering and design with Geely.
The high cost of electric vehicle batteries makes it difficult for automakers to make affordable zeros
Several emissions vehicles have formed alliances with Chinese partners.
Daimler's German rival, BMW, recently unveiled plans to make Minis in China. In China, the production cost is lower, for small electric vehicles.
Daimler and Geely did not disclose the financial terms of their deal.
They said in a joint press release that the details of the joint venture will be finalized by the end of 2019.
Daimler is currently working with Renault to develop and manufacture smart cars and build small cars in factories in France and Slovakia.
The Daimler plant in Hambach, France, will be rebuilt to make Mercedes-
It is said that is Mercedes-Benz car.
Since Geely acquired Swedish carmaker Volvo from Ford Motor Company in 2010, Geely has been rapidly expanding through mergers and acquisitions.
Daimler and Geely formed a joint venture last year.
A joint venture in China.
Daimler chief executive Dieter zetscher said last month that after Geely Chairman Li Shufu bought a 9, the German carmaker
Daimler held a 69% stake in 2018.