Geely Buys $9 Billion Stake in Daimler

[dalab]

I hope it won't be done:

Monday, December 23, 2019, 8:15 p.m.
Will Daimler become a customer?
Geely and Volvo apparently want to enter the engine business

Geely engines can be used on Mercedes models in the future. The Chinese automaker and the Swedish subsidiary Volvo want to supply engines to other manufacturers, according to a media report.

Geely CEO Li Shufu and Volvo Car CEO Håkan Samuelsson: Will they provide motors to Daimler in the future? (Photo: dpa)

Chinese automaker Geely and its Swedish subsidiary Volvo plan to enter the engine business for third-party customers, reports "Manager Magazin." Consequently, companies want to merge their powertrain units and supply other car manufacturers in the future.

The German car company Daimler is also a potential customer, the magazine continues. Small Geely engines could be very interesting for Mercedes models, he says in Stuttgart. However, the initial conversations have failed. Geely's main shareholder, Li Shufu, owns almost ten percent of Daimler's shares. (You)

automobilwoche.de/article/20191223/NACHRICHTEN/191229988/1339/wird-daimler-kunde-geely-und-volvo-wollen-offenbar-ins-motorengeschaeft-einsteigen

 

[Centurion]

Let the cross pollination of components begin!

 

[Grosser]

Probably Geely engines will end up in Smart cars, since it's 50% Chinese.

 

[CrunchSlaughtered]

Probably Geely engines will end up in Smart cars, since it's 50% Chinese.

Smart will be only electric in the future.

 

[KiwiRob]

I hope it won't be done:

Monday, December 23, 2019, 8:15 p.m.
Will Daimler become a customer?
Geely and Volvo apparently want to enter the engine business

Geely engines can be used on Mercedes models in the future. The Chinese automaker and the Swedish subsidiary Volvo want to supply engines to other manufacturers, according to a media report.
...

Oh snap I said this was going to be a possibility in a previous thread, Merc1 of course said I was an idiot and didn’t know what I was talking about. So far I’m two for two, Mercedes AMG models downsizing to 4 cylinder hybrids and the possibility of Volvo power trains in future Mercedes models.

 

[dalab]

Daimler, Volvo mull engine r&d cooperation

BERLIN -- Daimler and Volvo Cars, owned by China's Geely, are considering cooperating to cut the costs of developing combustion engines, a magazine reported on Sunday, citing unnamed company sources.
Automobilwoche, an affiliate of Automotive News Europe, cited a Volvo manager as saying there were initial talks with Daimler, but no concrete plans, while a company spokesman said it was too early to talk about firm projects, although it was not excluding anybody.

A Daimler spokesman said the company's cooperation with Geely, which owns a 10 percent stake in the German automaker, was developing in a positive way, but declined to comment further.
Global tariffs, accelerated by a trade war between China and the U.S., as well as higher investment requirements for electric and autonomous vehicles, are forcing automakers to seek new ways to cut and share costs.

In October, Volvo said it would merge its engine development and manufacturing assets with those of Geely, creating a division to supply in-house brands and also potentially others with next-generation combustion and hybrid engines.
Automobilwoche said this new division would start operating by the end of March, which could be a possible starting point for cooperation with Daimler, while a further step could be a partnership to develop electric power trains.

Geely and Daimler have said they plan to build the next generation of Smart electric cars in China through a joint venture and the two companies are also cooperating on a premium ride-hailing service in China.

 

[Robbie]

Daimler, Volvo mull engine r&d cooperation

BERLIN -- Daimler and Volvo Cars, owned...

There was a similar post in the MB forum.

 

[Centurion]

They better accelerate the R&D cooperation as Volvo's biggest weakness is its engines, and the number one reasons why I wouldn't consider buying one despite their cars fabulous designs.

 

[Wolfgang]

The latest developments.

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[Wolfgang]

StarRides Launches in Third City, Offering Premium Ride-Hailing Service in Chengdu

• StarRides officially launches in Chengdu, its third city in China following Hangzhou and Guangzhou
• Premium ride-hailing service registers a growth rate of almost 80 percent on a monthly basis for registered users
• StarRides offers a premium chauffeur service with a new fleet of Mercedes-Benz vehicles including S-Class, E-Class, C-Class and V-Class

Stuttgart / Hangzhou - Following the successful launches in Hangzhou nine month ago and Guangzhou last month, the premium ride-hailing provider StarRides, a joint venture of Daimler Mobility AG and Geely Technology Group, a subsidiary of Zhejiang Geely Holding Group (Geely Holding), officially launches its service in the third metropolis, the city of Chengdu.

Since its start in December 2019, StarRides has achieved growth in both registered users as well as daily active users with numbers increasing by an average of 80 percent on a monthly basis. The vast majority of users are business travelers heading to and from the airport or railway stations. It allows StarRides’ drivers a high satisfaction rate, showcasing the quality of service and StarRides commitment to servicing the premium segment in China. For the launch in Chengdu 100 vehicles will be offered, it is intented to increase this number to 200 by the end of this year.

Stephan Unger, Member of the Board of Management of Daimler Mobility for Finance, Controlling, Risk Management and Daimler Mobility Solutions states: "Premium ride-hailing is a key element in our mobility ecosystem, which ranges from multi-year financing contracts to flexible leasing, car rental and subscription models as well as on-demand mobility. The strong growth rate in Hangzhou and Guangzhou shows that StarRides is a perfect offering for customers looking for a true premium ride-hailing experience. With the launch of StarRides in Chengdu, we are confident that the success story will continue into south western China.”

Geely Technology Group President, Liu Jinliang said “As the first strategic partnership between Geely and Daimler, StarRides epitomizes the win-win opportunities and quality services that can arise when we work together. The level of services provided by StarRides has set an example for all in our industry and reflects Geely’s continued transformation as a global mobility technology group.”

About StarRides

StarRides passengers can make an appointment in advance for a wide range of customizable chauffeur services and can set appointments with specific chauffeurs. Each chauffeur undergoes a strict selection processes including health checkup, background check, defensive driving training, premium service training, and other trainings by top driving instructors. StarRides chauffeurs are also bilingual in Chinese and English to meet the needs of international customers. Users can book rides with StarRides via an App, WeChat mini-program or through its official website (www.starrides.com).

StarRides integrates perfect quality, considerate service and distinguished experience into the lives of Chengdu citizens, offering a premium mobility service in this warm and lively city - Chengdu.

 

[KiwiRob]

They better accelerate the R&D cooperation as Volvo's biggest weakness is its engines, and the number one reasons why I wouldn't consider buying one despite their cars fabulous designs.

Which engines, I think the VEA engine is probably better than the Mercedes 4 cylinder engine. If you think volvo are going back to engines with more then 4 cylinders you haven't been following them very closely.

 

[Centurion]

Which engines, I think the VEA engine is probably better than the Mercedes 4 cylinder engine. If you think volvo are going back to engines with more then 4 cylinders you haven't been following them very closely.

Yes. Volvo are 80% invested in hybrids and electric cars. It will be interesting to see what powertrains the next XC90 will have as the engine bay of the current generation doesn't have space for a 6 cylinder engine.

 

[Wolfgang]

Lynk & Co shows Zero Concept at Auto China 2020
Mary From Gasgoo -- September 27 , 2020

Beijing (Gasgoo)- Lynk & Co, the premium brand of Geely Auto Group, showcased the Lynk & Co Zero Concept along with other products from the brand at the Beijing International Automobile Exhibition (Auto China 2020).

Having released 01, 02, 03, 05 and 06 models in China, the brand has delivered over 300,000 cars to date. According to the brand, it plans to launch an updated version of the Lynk & Co 01 in Europe at the end of this month. The automaker aims to cover five different segments, including SUV, Crossover, Coupe SUV and sedan models.

Unveiled before the auto show, the Zero Concept is based on Geely Holding’s Sustainable Experience Architecture (SEA), a pure electric architecture on which all new electric vehicles within the Geely Holding Group portfolio will be based. Positioned as the first open source architecture, the SEA will be shared with other third-party manufacturers for their own electric vehicle development. Geely Holding will deploy the SEA architecture across its portfolio of nine global automotive brands which collectively sold over 2 million units in 2019.

The Concept is 4950mm long with a wheelbase of 2999mm. Using the SEA architecture has given Lynk & Co the possibility to create a vehicle with perfect proportions with low overhangs both front and rear as well as a dynamic sporting profile which fits the position of Concept Zero as a technology orientated performance touring coupe.

Thanks to the high bandwidth and high efficiency of the architecture, the Concept can be customized and support full life Over the Air updates. Range of the production version is expected to be over 700km under the NEDC cycle, while performance is also expected to reach sub four seconds for the 0-100km/h time. The Zero Concept will go into production in 2021 at a new facility in Eastern China.

Equipped with all new CoPilot advanced driving assistance system, the ZERO Concept can offer highly automated driving functions. Mobileye SuperVision, part of the system, was developed jointly by Lynk & Co and Mobileye. With the support of Mobileye’s technology, the Concept can provide a scalable function set for various autonomous driving scenarios. (Photo source: Lynk & CO., Motortrend)

Lynk & Co shows Zero Concept at Auto China 2020

 

[Wolfgang]

Daimler to develop next-generation engines with China's Geely

BERLIN (Reuters) - German carmaker Daimler will cooperate with China's Geely to build a next-generation combustion engine for use in hybrid vehicles, it said on Tuesday.

Efforts to share development costs between the Chinese and the German groups come as the growth potential for combustion engines faces the twin threat of the COVID-19 crisis and a regulatory clampdown on vehicle emissions.

“The companies plan to develop a highly efficient modular engine,” a spokesman for Daimler said, adding that it would be used in hybrid drivetrains and manufactured in Europe and China.

German factories will be retooled gradually to build electric drivetrains while the manufacture of combustion engines will continue in Germany, Daimler said.

News of the alliance was a surprise to Daimler’s works council at its factory in Untertuerkheim, which specialises in electric and gasoline powertrain assembly.

“We are speechless. There was not even a discussion about potential alternative manufacturing locations,” said Michael Haeberle, the works council chief for Untertuerkheim.

“We have the ability to build four cylinder engines in Untertuerkheim but there were not talks about it.”

The alliance was first reported by German business daily Handelsblatt on Tuesday, citing company and industry sources.

Most of the engines will be made in China, Handelsblatt said. The alliance with Geely, which owns a 9.69% stake in Stuttgart-based Daimler, means that parts of an existing partnership with Renault will be pared back.

A Renault source told Reuters that the Daimler-Geely project does not mean an end of cooperation between Daimler and Renault.

Citing Daimler sources, Handelsblatt said the Daimler-Geely pact would save the German carmaker a “triple-digit million sum” - implying an amount above 100 million euros ($119 million) and less than 1 billion euros.

Daimler to develop next-generation engines with China's Geely

German car maker Daimler <DAIGn.DE> said on Tuesday it will cooperate with China's Geely to build next-generation combustion engines for use in hybrid vehicles.

www.reuters.com

 

[KiwiRob]

Yes. Volvo are 80% invested in hybrids and electric cars. It will be interesting to see what powertrains the next XC90 will have as the engine bay of the current generation doesn't have space for a 6 cylinder engine.

There won't be any change in the next model either, no Volvo will ever have more than 4 cylinders, they have made this very clear. As a policy it hasn't hurt them at all, they sold more cars last year then any other year in there history.

 

[Gianclaudio]

they sold more cars last year than any other year in their history.

You're welcome

 

[Centurion]

There won't be any change in the next model either, no Volvo will ever have more than 4 cylinders, they have made this very clear. As a policy it hasn't hurt them at all, they sold more cars last year then any other year in there history.

Volvo's hybrid and electric(Polestar) only strategy is the right way forward. ICE only cars will be marginalised and penalised well before the ban on new car sales kicks in across the globe.

 

[Rolf]

Some more details on the shared hybrid engines with Geely/Volvo from AMS

Mercedes EV strategy

Reduce powertrain costs by 70% by 2030

MERCEDES AND GEELY FROM CHINA DEVELOP TOGETHER
The next GLA will get the same hybrid as Volvo
Daimler is growing together with its Chinese shareholder Geely: Mercedes is developing future 3- and 4-cylinder hybrids with the parent company of Volvo, which also wants to sell cars in Europe with the Lynk & Co. brand.
The car manufacturer Geely, which also owns the Swedish brand Volvo and who wants to address mainly young customers in Europe with the founding of Lynk & Co., holds 9.7 percent of Daimler and is thus the largest single shareholder of the German traditional group. The two companies also have the joint venture Smart Automobile Co., Ltd. founded for the smart brand "in order to further develop Smart into a leading provider of intelligent premium electric vehicles". Both companies immediately brought a lot of capital, where M Mercedes essentially contributes the brand (Smart). Smart is headquartered in Hangzhou Bay, Ningbo, China.

At the beginning of November, the Chairman of the Board of Management of Daimler AG, Ola Källenius, told Handelsblatt: "With Geely founder Li Shufu, we have a second shareholder from China who thinks very visionary and progressive and also sees the future of the automobile in Daimler. This is a new one and a very good partner with whom we are further developing the Smart, for example. I see potential for more ".

On November 20, 2020, Daimler reported in a press release: "Daimler AG and Geely Holding, the parent companies of Mercedes-Benz AG and Volvo Cars are working together on the development of a highly efficient next-generation drive system for hybrid applications". The potential areas of cooperation included "measures in the areas of development, procurement, industrialization and efficiency", continues the press release.

A development cooperation in the combustion engine sector is quite surprising, because it has always been considered a European domain, while more and more serious electric cars are coming from China.

Engines are also to be built in Germany
But Daimler already announced in the investor update in October 2020 that it wanted to save 70 percent of the costs of developing combustion engines by 2030. In line with this, Daimler had already said: "The new project with Geely Holding and Volvo's organizational unit for engines is part of the comprehensive transformation of Mercedes-Benz as part of a focused value creation strategy. The aim is to further improve global competitiveness and create economies of scale Regarding the technology, Mercedes writes: "The companies are planning to develop a highly efficient modular motor that will enable next-generation hybrid vehicle applications that will be manufactured in Europe and China. Mercedes continues its endeavors to convert the existing powertrains to electric scopes. "Mercedes Development Board Member Markus Schäfer said of the upcoming cooperation:" Our goal is still to be CO2 neutral. We aim to have a climate-neutral new car fleet by 2039. The consistent electrification of our powertrain portfolio is therefore an essential part of our powertrain strategy. To this end, we are systematically converting our portfolio so that by 2030 more than half of our car sales will consist of plug-in hybrids or purely electric vehicles. We look forward to the future, in which, together with Volvo's engine organization unit and Geely, we will further expand our synergies in the field of highly efficient drive systems in China and around the world.


After all, the engines should still be built in Europe. Mercedes does not see any disadvantages for the Untertürkheim plant, for example: "The planned development project with Geely Holding and Volvo's organizational unit for engines has no impact on the scope for the Mercedes-Benz Untertürkheim plant, which is currently being negotiated with the social partner".

New engines for the new MMA architecture
With the joint engine development, Geely should integrate itself from Daimler's small car segment into the compact class of the Swabians, where its own brands Geely, Lynk & Co. and Volvo are also on the road. Maybe even with more engines than Renault so far. The French even came up with a small diesel engine for the C-Class at times, and in 2017 Renault presented a 1.33-liter four-cylinder turbo gasoline engine with 115 to 160 hp that was developed jointly with Mercedes and is used in the A-Class.

The traditional Swedish brand Volvo, quite a competitor for Mercedes models such as GLA, GLB (XC40), GLC (XC60) GLE (XC90), but also C- and E-Class (S / V60 and S / V90), currently has quite a few Hybrid models in the program for which joint development is possible.

Renault
The 4-cylinder, developed jointly with Renault, is used in the A-Class.

At Mercedes, the new drive trains are likely to be used primarily in the models of the A-Class family. The series is based on Daimler's Modular Front Architecture (MFA II). The next generation of the compact car will then be based on the Mercedes Modular Architecture (MMA), which is supposed to be electric first, but offers space for smaller combustion engines in the front of the car, with various drive concepts from mild or plug-in hybrids or as range extenders for Electric drives could be used. The profile fits exactly on the cooperation engines. A first MMA model is scheduled to hit the market in 2024 and will then certainly carry a motor developed together with the Chinese. If the combustion engines are used for propulsion, they drive the front axle; As previously known, electric motors for plug-in hybrids sit between the combustion engine and transmission. The rear axle is designed to be driven by an electric motor.

CONCLUSION
That Daimler is outsourcing the electric Smart to China sounds plausible in view of the electric expertise and cheaper production there. A joint development and use of combustion engines with a Chinese company that also owns competing brands like Volvo, on the other hand, has a very cost-oriented effect - the Swabian will to save seems to easily outweigh concerns about technology theft, loss of image or strong competition. If Daimler would at least get Chinese battery know-how in return - but that is currently not in sight.





https://www.auto-motor-und-sport.de...-gruenden-smart-joint-venture-suv-2022-china/

 

[Wolfgang]

Premium Ride-Hailing Service StarRides now available in 6 Chinese cities, launches English App in Chinese Market

• StarRides is now available in Hangzhou, Guangzhou, Chengdu, Xi’An, Beijing and Shanghai
• English version of premium ride-hailing app for international customers in China introduced
• Average monthly growth rate of registered users of almost 80 percent underlines robust demand

Stuttgart/Beijing - The premium ride-hailing provider StarRides, a joint venture of Daimler Mobility AG and Geely Technology Group, is now available in six cities across China. The service was initially launched just one year ago in December 2019 in Hangzhou, China. StarRides now offers its services in Hangzhou, Guangzhou, Chengdu, Xi’An, Beijing and Shanghai, covering the majority of China’s major business metropolises and most popular travel destinations. More launches in Chinese cities are planned. Since its start in December 2019, StarRides has achieved growth in registered users by an average of almost 80 percent on a monthly basis. The vast majority of users are business travelers heading to and from the airport or railway stations.

StarRides also launched an English version of its ride-hailing app for international users based in China today. The addition of the English version of the StarRides App opens the doors to greater numbers of English-speaking users in the Chinese market such as international travelers and foreign residents living in China.

Premium chauffeur services with Mercedes-Benz vehicles

StarRides, headquartered in Hangzhou, is offering premium chauffeur services with Mercedes-Benz vehicles exclusively. China is the world’s largest ride-hailing market with increasing demand in premium mobility solutions. In 2019, Daimler Mobility and Geely Technology Group joined forces to tap the full potential of this rising market, launching its services in December 2019 in Hangzhou. Daimler Mobility AG, one of the three divisions of Daimler AG, offers financial and mobility solutions. Geely Technology Group is a subsidiary of Zhejiang Geely Holding Group. Offering an English booking and service experience is a further step towards StarRides’ objective of becoming one of the leading premium mobility service providers in China.

Stephan Unger, Member of the Board of Management of Daimler Mobility for Finance, Controlling, Risk Management and Daimler Mobility Solutions states: ”Premium ride-hailing is a key element in our mobility ecosystem. The strong growth rates show that StarRides is a perfect offering for customers looking for a true premium ride-hailing experience. Offering an English-based booking and customer experience is a very important next step to increase StarRides’ footprint in China.”

Geely Technology Group President, Liu Jinliang said ”As the first strategic cooperation project between Geely Technology Group and Daimler Mobility AG, StarRides has ensured a win-win cooperation, provided high-quality of services, and has set -new industry standards amongst mobility service providers. Together with our partners, we strive to create more possibilities in the future of mobility services through synergies and leverage resources through our network of suppliers.”

Entire booking process available in English

With StarRides’ English version of the App the entire process of booking can now be completed in English and paid by using international credit cards. StarRides offers one-way bookings, bookings by the hour, airport transfers, and cross-city trips on a reservation-based basis. Customers can choose between luxury sedans such Mercedes-Benz S -Class, or E-Class or even Mercedes V-Class MPV for seating of up to 6 passengers. All Chauffeurs serving international customers speak English.

 

[Wolfgang]

SMART WILL USE GEELY'S NEW SEA PLATFORM FROM 2022

With the next smart generation, smart will use the new “SEA” (Sustainable Experience Architecture) e-platform from the Chinese Geely Group, which is also the largest single shareholder in Daimler AG.

Geely SEA platform for smart

The new SEA platform from Geely serves as the basis for future electric cars, which will be used in series production for the first time by the Lynk & Co brand with its “Zero Concept”. The platform itself is basically suitable for various types of vehicles with front, rear or all-wheel drive with up to three engines in the small car to the luxury class segment. The use of a “range extender” is also provided.

smart SUV is the first joint model with Geely

smart uses the platform for its smart SUV model, which will be the first vehicle of the new joint venture between Mercedes-Benz AG and Geely to be produced as a fully electric SUV from 2022. The model itself is not only intended for China, but will also be offered by smart on the European markets. However, the focus will continue to be on urban mobility. The design for the smart SUV continues to come from Mercedes-Benz, although the model itself is produced in China.

After the introduction of the smart SUV model in 2022, an A-segment vehicle will follow again, although the exact model timetable has not yet been communicated.

https:///2020/12/smart-nutzt-sea-plattform-von-geely/