Skip to main content
Sister Publication Links
  • Automotive News
  • Automobilwoche
  • Automotive News Canada
  • Automotive News China
Subscribe
  • Subscribe
  • Newsletters
  • Login
  • HOME
    • Latest news
    • Automakers
    • Suppliers
    • New Product
    • Environment/Emissions
    • Sales By Market
    • On The Move
    • Auto Shows
    • Munich Auto Show
    • Geneva Auto Show
    • Paris Auto Show
    • Beijing Auto Show
    • Shanghai Auto Show
  • Features
    • Long Read
    • Interview of the Month
    • Focus on Electrification
    • Focus on Technology
    • Segment Analysis
    • Cars & Concepts
    • Supplier Spotlight
    • Europe By The Numbers
  • Opinion
    • Blogs
    • Commentary
    • Guest columnists
  • Photos
    • Photo Galleries
    • Geneva Photo Gallery
    • Beijing Photo Gallery
    • Frankfurt Photo Gallery
    • Paris Photo Gallery
    • Shanghai Photo Gallery
  • Podcasts
  • Car Cutaways
  • EVENTS
    • ANE Congress
    • ANE Rising Stars
    • ANE Eurostars
  • More
    • Publishing Partners
    • Social Media
    • Contact Us
    • Media Kit
    • About Us
    • Capgemini: All or nothing: Why circular business models require a holistic approach
    • Capgemini: Invent Head on automotive takeaways from CES 2023
    • Capgemini: Securing the industry's future through a radical rethink
    • Capgemini: Succeeding with the automated driving journey through AI
    • Capgemini: The circular economy is spurring new thinking on EV batteries
    • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
    • HEXAGON: Plugging into data is the only way to make winning EVs
    • TUV Rheinland: Ideas, services and certifications for smart mobility
    • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
    • Toyota Europe
    • UFI Filters
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter
MENU
Breadcrumb
  1. Home
  2. Automakers
February 01, 2022 04:00 AM

Mercedes-Geely Smart venture said to seek up to $1 billion

Smart Automobile, a joint venture between Mercedes and Geely Holding could raise funds as part of its plans to promote the minicar as an all-electric brand.

Bloomberg
  • Tweet
  • Share
  • Share
  • Email
  • More
    Print
    SMART Concept #1
    Larry P. Vellequette

    The four-seat Concept #1 previews a new generation of Smart electric cars. The production version will use Geely's SEA platform that offers a driving range of up to 700 km (435 miles) and greatly reduced charging times thanks to 800-volt technology.

    Smart Automobile, a joint venture between Germany’s Mercedes-Benz and China’s biggest private carmaker Zhejiang Geely Holding Group, is considering raising funds as part of its plans to promote the minicar as an all-electric brand, according to people familiar with the matter.

    Smart is talking to advisers and could seek about $500 million to $1 billion in fresh funds by selling a minority stake in the venture, the people said, asking not to be identified because the matter is private.

    A private fundraising deal for Smart, which is currently valued at roughly $5 billion, could attract interest from other carmakers and strategic investment funds, the people said.

    Considerations are preliminary and details such as the size of the round could change based on demand, the people said.

    The joint venture will use the proceeds to boost its brand as an electric-vehicle maker, the people said. Smart’s global lineup will become all-electric, after the brand already made the switch in North America.

    Representatives for Smart and Mercedes-Benz declined to comment.

    Mercedes-Benz and Geely, owned by billionaire Li Shufu, formally announced the 5.4 billion-yuan ($849 million) Smart joint-venture, based in Hangzhou Bay, Ningbo, in early 2020.

    As part of the agreement, Mercedes designers would style future Smart vehicles and Geely would engineer them. With production based in China, the venture would aim to extend its portfolio of pure premium electric and connected vehicles.

    Smart signaled its upscale ambitions at the IAA in Munich in September by unveiling the Concept #1. The SUV's production version will be designed by Mercedes and built in China.

    Mercedes first introduced Smart in Germany in 1998, and brought the quirky brand to the U.S. a decade later, with the initial two-seater model targeting urban buyers squeezed for parking spots. Sitting oddly next to the gleaming high-end S-Class, Smart never met its original global target of 200,000 annual deliveries.

    Despite racking up losses, the tiny cars for some years helped Mercedes lower average fleet emissions in line with tightening regulations to even out burgeoning sales of heavy, gas-guzzling models like the GLE. That role has fast diminished since the German manufacturer started rolling out battery-powered models and CEO Officer Ola Kallenius shifted his focus to premium vehicles for better company valuation. 

    Mercedes-Benz’s parent Daimler, which counts Geely as one of its biggest shareholders, has lately been betting on China’s young, city-dwelling consumers to rejuvenate the brand in the world’s largest auto market. Still, the Smart joint venture will have to compete with a multitude of established and up-and-coming electric-vehicle makers in China. 

    Following the spinoff of Daimler’s truck unit in December, the automaker changed its name to Mercedes-Benz Group on Feb. 1, to signal its segue to a nimble standalone unit tackling the industry’s transformation.

    Mercedes aims to have battery-powered models in all its segments this year to rival Tesla.

    Related Article
    Geely-Mercedes JV to sell Smart EVs in Malaysia, Thailand
    RECOMMENDED FOR YOU
    Toyota to increase Yaris capacity at French plant
    Recommended for You
    Toyota Yaris Cross
    Toyota to increase Yaris capacity at French plant
    Connected cars technology panel
    Stellantis sees new ways to generate profits from vehicle software
    VW logo in car mirror
    VW's rights may have been breached by Italian antitrust fine, EU court adviser says
    Sign up for free newsletters
    EMAIL ADDRESS

    Please enter a valid email address.

    Please enter your email address.

    Please verify captcha.

    Please select at least one newsletter to subscribe.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    Get Free Newsletters

    Sign up and get the best of Automotive News Europe delivered straight to your email inbox, free of charge. Choose your news – we will deliver.

    You can unsubscribe at any time through links in these emails. For more information, see our Privacy Policy.

    SUBSCRIBE TODAY

    Get 24/7 access to in-depth, authoritative coverage of the auto industry from a global team of reporters and editors covering the news that’s vital to your business.

    SUBSCRIBE NOW
    Connect with Us
    • Twitter
    • Facebook
    • LinkedIn
    • Instagram

    Founded in 1996, Automotive News Europe is the preferred information source for decision-makers and opinion leaders operating in Europe.

    Contact Us

    1155 Gratiot Avenue
    Detroit MI  48207-2997
    Tel: +1 877-812-1584

    Email Us

    ISSN 2643-6590 (print)
    ISSN 2643-6604 (online)

     

    Resources
    • About us
    • Contact Us
    • Advertise with us
    • Advertise with Us
    • Ad Choices Ad Choices
    • Sitemap
    Awards
    • Rising Stars
    • Eurostars
    • Leading Women
    Legal
    • Terms and Conditions
    • Privacy Policy
    • Privacy Request
    Automotive News Europe
    Copyright © 1996-2023. Crain Communications, Inc. All Rights Reserved.
    • HOME
      • Latest news
      • Automakers
      • Suppliers
      • New Product
      • Environment/Emissions
      • Sales By Market
      • On The Move
      • Auto Shows
        • Munich Auto Show
        • Geneva Auto Show
        • Paris Auto Show
        • Beijing Auto Show
        • Shanghai Auto Show
    • Features
      • Long Read
      • Interview of the Month
      • Focus on Electrification
      • Focus on Technology
      • Segment Analysis
      • Cars & Concepts
      • Supplier Spotlight
      • Europe By The Numbers
    • Opinion
      • Blogs
      • Commentary
      • Guest columnists
    • Photos
      • Photo Galleries
      • Geneva Photo Gallery
      • Beijing Photo Gallery
      • Frankfurt Photo Gallery
      • Paris Photo Gallery
      • Shanghai Photo Gallery
    • Podcasts
    • Car Cutaways
    • EVENTS
      • ANE Congress
      • ANE Rising Stars
      • ANE Eurostars
    • More
      • Publishing Partners
        • Capgemini: All or nothing: Why circular business models require a holistic approach
        • Capgemini: Invent Head on automotive takeaways from CES 2023
        • Capgemini: Securing the industry's future through a radical rethink
        • Capgemini: Succeeding with the automated driving journey through AI
        • Capgemini: The circular economy is spurring new thinking on EV batteries
        • Capgemini: Toyota and Capgemini leaders on how OEMs can handle industry changes and succeed
        • HEXAGON: Plugging into data is the only way to make winning EVs
        • TUV Rheinland: Ideas, services and certifications for smart mobility
        • TUV Rheinland: Testing of automated and autonomous vehicles on test tracks
        • Toyota Europe
        • UFI Filters
      • Social Media
        • Facebook
        • Instagram
        • LinkedIn
        • Twitter
      • Contact Us
      • Media Kit
      • About Us