Daimler and Geely Holding have announced a new joint venture to further develop Smart electric vehicles.
Under the terms of the agreement, the firms said that a "new generation of Smart electric models" would be assembled at a purpose-built electric car factory in China. Global sales of the new cars are set to start in 2022.
"We will jointly design and develop the next generation of Smart electric cars that combine high-quality production and known safety standards for sale both in China and globally," Dieter Zetsche, who is chairman of the board of management at Daimler and head of Mercedes-Benz Cars, said in a statement Thursday.
This week's joint venture builds on an agreement between Daimler Mobility Services and Geely Technology Group. That agreement, which was announced in 2018, saw the firms agree to work together on a ride-hailing service in China.
Commenting on the new joint venture, Li Shufu, the chairman of Geely Holding, said that the companies would "leverage our experience and global competencies in brand management, R&D, manufacturing, supply chain management and other areas."
"The synergies from this cooperation will lead to mutual benefits, at the same time we will further develop technologies for smart including connectivity, to continue to lead in the industry as it undergoes a wider transformation," Shufu added.