March 28 (Renewables Now) - German automotive group Daimler AG (ETR:DAI) said Thursday it has agreed to form a 50:50 joint venture for the Smart electric vehicles with its major shareholder, Chinese sector company Geely.
The joint venture is expected to be finalised by the end of 2019, with global sales of the new generation of Smart models set to start in 2022. The financial details of the deal remained undisclosed.
All future production will be in China. The new Smart cars will feature Mercedes-Benz design and Geely engineering.
The board of directors of the new company will be made up of six people, with each venture partner appointing three executives.
Daimler is planning to continue with the production of its current Smart vehicle generation in Slovenia and its French Hambach plant.
Daimler and Geely already agreed in October to set a ride-hailing joint venture in China, for which they filed for EU approval on Tuesday.
Geely's founder and owner acquired a 9.69% stake in the German carmaker in February 2018, becoming its biggest individual investor.
(EUR 1.0 = USD 1.125)