Volvo and Mercedes owners forge path for improved electric vehicle technology

Chinese car manufacturer Geely is looking to push forward with its electric vehicle technology by forming a partnership with Mercedes-Benz owner, Daimler.

The chairman of Geely has taken the bold step of becoming the largest shareholder in automotive corporation Daimler AG, in the hope that the two companies will co-operate on electric car development.

Billionaire businessman Li Shufu purchased 9.69 per cent of Daimler, which owns Mercedes-Benz, AMG, Mayback and more. Already Geely owns Volvo, LEVC, and autonomous vehicle start-up Lynk & Co, which all have a clear electric vehicle focus.

Following the investment, share values in Daimler started to increase, with Shufu expected to meet with executives from the company as well as officials from the German government over the course of this week.

In a statement, Shufu commented: “Daimler is an outstanding company with a first-class management.

“It will be an honour to support this unique team under the leadership of Dieter Zetsche in the future.

“I am particularly pleased to accompany Daimler on its way to becoming one of the world’s leading electro-mobility providers.”

In its own press release, Daimler added: “Daimler knows and appreciates Li Shufu as an especially knowledgeable Chinese entrepreneur with a clear vision for the future, with whom one can constructively discuss the change in the industry.”

It’s expected that Daimler will also further extend its influence in the Chinese market, which it has already started doing in its partnership with the Beijing Automotive Industry Holding Company (BAIC).

Today, Daimler and BAIC announced a £13.4bn investment in Mercedes-Benz production in China, with the Beijing Benz Automotive Company (BBAC) preparing to operate another factory in addition to its location in Beijing’s Yizhuang Park.

Hubertus Troska, member of the board of management of Daimler AG, responsible for Greater China, commented: “Local production is a strong pillar of our sustainable development in China.

“By deepening our cooperation with our local partner BAIC, BBAC will continue playing a key role for Mercedes-Benz in China.

“This production capacity expansion for BBAC will allow us to meet the expected growing demand for premium passenger cars in China, including for electric vehicles.”

Xu Heyi, chairman of BAIC, added: “With over a decade of remarkable achievements, BBAC stands as evidence of the strong collaboration between BAIC and Daimler.

“As a model of Sino-German cooperation, BBAC has set successive benchmarks in terms of technology and quality standards.

“Going forward, both partners will continue to support BBAC as it provides additional, attractive products, contributing to the development of the Chinese automotive industry.”

Written by Tristan Shale-Hester