Daimler AG and Zhejiang Geely Holding Group have agreed to form an equally-owned joint venture that will develop and operate smart and small urban premium electric vehicles. The agreement covers the assembly in a purpose-built electric car factory in China that will be put on sale in the global market in 2022.

Li Shufu (left), Geely Holding Chairman and Dieter Zetsche (right), Chairman of the
Board of Management of Daimler AG and Head of Mercedes-Benz Cars

The board of directors of the new smart joint venture will be made up of six executives with equal representation from both companies. The joint venture partners have agreed that the new generation of smart vehicles will be styled by the worldwide Mercedes Benz Design network with engineering from Geely global engineering centers. Future production will be located in China.

As part of the vehicle-development program, the smart product portfolio is also planned to be extended into the fast-growing B-segment. The joint venture is expected to be finalized by the end of 2019. Financial terms of the smart joint venture have not been disclosed.