Mercedes-Benz partners with Geely to develop next-generation electric Smart

Published 08 January 2020

Mercedes-Benz has joined Chinese car giant Geely as part of a venture to produce new electric Smart cars from 2022.

In a deal worth £594 million, Mercedes-Benz and Geely have established a new brand which will develop and build electrified Smart models in China.

The new generation of Smart vehicles will be designed by Mercedes-Benz's global design network and developed by Geely. Volvo and Lotus are currently owned by Geely, which means they could share technology with the new-generation Smart vehicles.

As well as developing new versions of the current ForTwo and ForFour, Smart will also offer a slightly larger model to rival the new Peugeot e-208. It's unlikely to be an affordable offering, though, with the Smart brand expected to focus on premium electric vehicles.

Sales of Smart cars were down by nearly 50 per cent in 2019 as the brand moved towards electrified vehicles. It's understood that it will continue to sell electric EQ-branded versions of the ForTwo and ForFour until a new model arrives in 2022.

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