Daimler & Geely Form 50:50 JV to Revive Smart Brand in China
Daimler and China's Geely have formed a 50:50 joint venture to co-own the Smart Brand, shifting production to China. This move comes after Smart Car's initial conception by Swatch in 1992 and its evolution into a popular, electric-friendly compact city car.
Smart Car began as a joint project between Swatch and VW, but VW withdrew, leading to Mercedes taking over. Daimler later absorbed Smart Car into its operations. Despite consistent losses, reaching 4 billion Euros by 2006, Smart Car sales have flourished, particularly in cars and other markets.
The first Smart Car models, the City Coupe and City Cabrio, were launched in 1998. This was followed by the Roadster in 2003 and the introduction of electric models. Today, the entire Smart Car range is electric. New models, including the Smart ForTwo, ForFour, and high-performance Brabus versions, are now available.
With the new joint venture, Daimler and Geely aim to strengthen the Smart Brand's global presence. By moving production to china, they hope to tap into the country's booming market and reduce costs, potentially reversing the brand's history of losses.
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