Geely to Buy Half of Smart Unit from Daimler

Geely to Buy Half of Smart Unit from Daimler 1
Geely to Buy Half of Smart Unit from Daimler 2

Daimler AG is nearing the sale of a 50% stake in its small-car brand Smart to China’s Geely Automobile Holdings Ltd, the Financial Times said on Tuesday, citing three people familiar with the matter.

The sale of the stake in Smart division will reportedly be confirmed ahead of the Shanghai Auto Show in April. Both Daimler and Geely declined to comment though.

Related: Geely Becomes China’s Third Largest Carmaker

Last year, Geely’s Chairman Li Shufu bought an almost 10% stake in Daimler, becoming its largest single shareholder. Since then the two automakers have been working close together and have also announced a joint-business to offer ride-hailing services in China.

Geely to Buy Half of Smart Unit from Daimler 4

The move by Geely will perhaps help out the German group as it struggles to carry the loss-making Smart brand, which sells only 130,000 cars a year compared to the 2.25 million cars Mercedes-Benz sells.

Related: Daimler and Geely to Form Premium Ride-Hailing Joint Venture in China

Although several European capitals are concerned that Chinese companies are acquiring assets in the EU to later transfer the technology back to China. However, the potential of Smart, which aims to become 100% battery-powered by 2020, is likely to be in China, the world leader for all-electric cars with a promising market for compact models.

Geely to Buy Half of Smart Unit from Daimler 6

Major assets of Geely Group include Geely Automobile Holdings Ltd. (46%), Volvo Cars (100%), Lotus Motor Cars (51%), Proton Cars (49.9%) and London Taxi (100%). Geely also owns the Australian based DSI (Drivetrain Systems International) since 2009 as well as the Lynk & Co brand which is positioned between Geely and Volvo, targeted towards the upscale market. In July 2017 it also purchased Terrafugia, an American maker of flying cars.

Geely to Buy Half of Smart Unit from Daimler 8
Share this:

About UsmanAnsari

A 3d animation professional, car enthusiast, petrolhead and social media influencer. Formerly written for PakWheels as well as major publications including Dawn. Founder of CarSpiritPK.com

View all posts by UsmanAnsari

Leave a Reply

avatar
  Subscribe  
Notify of