Daimler AG and Geely Holding, the parent companies of Mercedes-Benz and Geely Auto respectively, have confirmed their plans to collaborate on developing “highly efficient powertrain systems for next-generation hybrid vehicle applications.”
According to Daimler, this mutual cooperation is set to enhance both automakers’ global competitiveness while creating true economies of scale. Both groups will use their global R&D networks to work together on next-generation petrol hybrid engines, which will be produced in both Europe and China. Daimler says the new engines will be used on future Mercedes-Benz models, as well as the wider Geely portfolio of brands including Volvo, Lynk & Co as well as Proton.
Commenting on this, Hubertus Troska, member of the board of management of Daimler AG said:
“We have witnessed strong momentum in the development of the Chinese automotive industry over the past years, and we believe China will continue to offer great potential in terms of innovation, efficiency and economies of scale.”
An Conghui, the President of Geely Holding stated that:
“This project reflects the need for economies of scale and targeted R&D investment in clean and highly efficient powertrains and hybrid drive systems. Together with our partner, we will jointly develop the next generation of advanced technologies in order to remain at the top in the industry in times of wide-ranging change.”
This isn’t the first time that the two auto giants have come together for a partnership, they already have a joint venture to develop Smart brand globally, as well as collaborating on a premium ride-hailing service in China. Geely’s owner, Li Shufu, also holds a 9.7% stake in Daimler AG, being the largest single shareholder of the German group.