Mercedes-Benz and Geely announced that they have formally established the global joint venture, Smart Automobile Co., Ltd. after receiving regulatory approvals.

The joint venture has a total registered capital of 5.4 billion RMB (~P 39.6 billion). With this, Mercedes-Benz and Geely hope to transform Smart into a leading player in the electrified vehicles segment. The global headquarters of the new joint venture is set in Hangzhou Bay, Ningbo with operational sales functions based in China and Germany.

The new generation of Smart vehicles will be designed by the worldwide Mercedes-Benz Design network, and developed by the Geely global engineering network. Future production will be located in China.

As part of the vehicle-development program, the Smart product portfolio will be extended into the fast-growing B-segment that are in line with Smart’s brand positioning with a focus on pure premium electric and connected vehicles.