Geely to Make Hybrid Engines for Mercedes-Benz
By the year 2030, Mercedes-Benz wants more than half of its vehicles sold around the world to be either pure electric or plug-in hybrid.
So, in an effort to speed things up towards achieving these goals, Daimler AG, the parent company of Mercedes-Benz announced that it is joining forces with Geely Holding to develop hybrid powertrains. Areas of potential cooperation include engineering, sourcing, industrialization and efficiency measures.
Both groups will use global R&D networks to work together on a next-generation gasoline engine specified for hybrid applications to be produced at the companies’ powertrain facilities in Europe and China, which could be utilized by Mercedes-Benz AG together with its established partners in China as well as the wider Geely Holding Group portfolio of brands including Volvo Cars.
The export of the engine from China is also considered to be an option.
“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 potentials in terms of innovation, efficiency and economies of scale. With this cooperation with the wider Geely Holding Group, we will not only enhance our footprints in the world’s largest automobile market, but also strengthen our position along the global industry value chain for the future,” said Hubertus Troska, Member of the Daimler AG Board of Management.
“With our full commitment to electrification supported by our new ‘Sustainable Experience Architecture (SEA)’ as the core pillar, we will continue to seek competitive advantages in R&D, Production, Supplier Management and other fields and focus on the development of premium electrified vehicles,” said An Conghui, President and CEO of Geely Auto Group.
The new project with the wider Geely Holding Group is part of Mercedes-Benz’s comprehensive drivetrain strategy for the future. As part of “Ambition 2039”, Mercedes-Benz is consistently pushing towards “Electric first” with the electrification of all model variants and vehicle types, thus making a clear commitment on its way to CO2-neutrality.
In order to meet the different market requirements and various customer needs worldwide, highly efficient combustion engines are part of this transition. Mercedes-Benz remains committed to driving forward the transformation of drive systems even more rapidly and more efficiently while maintaining its technology leadership in the global markets.
Geely Holding is fully dedicated to offering its global users best in class products, services and experience through constant technical innovation, and resource integration. With this cooperation, both groups will combine their advantages and global resources to develop and produce highly efficient powertrain systems.
Daimler AG and Geely Holding are already working together to further develop the smart brand on a global basis and to provide premium ride-hailing services in the Chinese market.