On January 8, Zhejiang Geely Holding Group (hereinafter referred to as "Geely Holding") and Mercedes-Benz Corporation (hereinafter referred to as "Mercedes-Benz") announced that, with the approval of relevant regulatory authorities, the global joint venture company "Smart Automobile Co. Ltd." formed by both parties was formally established to jointly operate and promote the transformation and upgrading of Smart worldwide.

The registered capital of the company is 5.4 billion yuan, and the two parties will each contribute 2.7 billion yuan. Mercedes-Benz will acquire the corresponding shares mainly in the form of investment of the brand "Smart". The two parties will exert synergies in areas such as research and development, manufacturing and supply chain, and are committed to building Smart into a world-leading high-end electric intelligent car brand. The global headquarter of the company is located in the Hangzhou Bay New Area of Ningbo City, China, and its marketing centers are located in China and Germany.

The brand new generation of pure electric Smart will be designed by Mercedes-Benz’s global design department, and Geely Global R&D Center will be responsible for the research and development of the car. The new model will be produced in a brand new factory in China, and it is expected to be launched on the market and sold worldwide in 2022. According to the development plan of the new model, the target market of the future Smart will be expanded to the fast-growing compact car market, which is in line with the brand positioning.

The board of directors of the company will consist of 6 members, and both parties will appoint 3 members. Representatives of Geely Holding Group are Mr. Li Shufu, Chairman of Geely Holding Group, Mr. An Conghui, CEO and President of Geely Holding Group, Mr. Li Donghui, Executive Vice President and CFO of Geely Holding Group. Representatives of Daimler AG is Mr. Hubertus Troska, member of the board of directors of Daimler AG, responsible for Greater China business, Ms. Britta Seeger, member of the board of directors of Daimler AG, member of the board of directors of Mercedes-Benz AG, responsible for sales and marketing, and Mr. Markus Schäfer, member of the board of directors of Daimler AG, member of the board of directors of Mercedes-Benz AG, responsible for R&D and the development of Mercedes-Benz passenger cars.

Li Shufu, Chairman of Zhejiang Geely Holding Group, said that "Smart has unique brand charm, core values, and global influence, and is a leader in global urban mobility and fashionable transportation. Geely Holding will combine the advantages of R&D manufacturing, supply chain, and other areas and the deep understanding of the Chinese market to the company, promoting the synergy effect between the two sides on the basis of equality and mutual benefit, promoting the transformation of the brand to the direction of electric and intelligent cars, and realizing the commercial success of Smart in the global market."

Executive Editor: Ye Ke

Translation: Ye Ke, Chen Wenjing