It appears that Geely chairman Li Shufu’s 9.69% stake in Daimler is bearing fruit. Having already secured a joint venture to develop and build smart vehicles, his company is now working with Mercedes-Benz’s parent to produce a next-generation engine for hybrid vehicles, the German auto giant said yesterday.
According to a Reuters report, the partnership will enable the two to share development costs on the internal combustion engine, mitigating the effects of the coronavirus pandemic and tightening emissions regulations.
“The companies plan to develop a highly efficient modular engine,” said a Daimler spokesperson, adding that the mills will be built in both Europe and China. The company has said that while factories in Germany are gradually being retooled to build electric drivetrains, combustion engines will still be produced there.
German business daily Handelsblatt broke the news of the partnership yesterday – citing company and industry sources – and said most of the engines would be made in China. The news hasn’t been well-received by everyone, particularly Daimler’s works council at its Untertuerkheim plant, which specialises in assembling electric and petrol powertrains.
“We are speechless. There was not even a discussion about potential alternative manufacturing locations,” said council chief Michael Haeberle. “We have the ability to build four-cylinder engines in Untertuerkheim, but there were no talks about it.”
Handelsblatt reported that savings from the Daimler-Geely pact would amount to a “triple-digit million [euro] sum.” The new deal means that the existing collaboration with Renault will be pared back, although a Renault source told Reuters that it does not spell the end of their partnership.
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Daimler Volvo Geely Lotus > All
Even Germans are humble enough to co-develop engines with China. No need to be stuck up like Jepunis fanbois so proud of their ancient ICE engines with timing chain. The world has left them behind in history and we all should move forward or get left behind like their Jepunis lords.
““We are speechless. There was not even a discussion about potential alternative manufacturing locations,” said council chief Michael Haeberle”
You reap what you sow. This China company just want to rub shoulder with you hoping to bring up their brand name and at the same time rip your technology.
Well done, Geely! Even the resident hate trolls have to eat their own words. Remember how they said “Geely will never get techs from Mercedes” and “Geely is just a shareholder without sharing techs”? They are hating because you are always proving them wrong.
To the naysayers: Never say never!
Untung la kita. We can have volvo and mercedes engines for cheap in our protons!
Indons and thai pipu all jeles our protons.
Great collaboration from the best of both parties. Congrats to Geeky and Daimler!!!
This is win win situation and good for the consumer
Peoples are quick to retort when the notion “made in China” is somewhere along the paragraph.