Rumor has it that Daimler and BAIC New Energy will form a joint venture to produce smart electric vehicles in China

Bloomberg quoted people familiar with the matter as saying that Daimler is planning to produce electric smart cars in China with BAIC to boost sales in the Chinese market.

The above-mentioned people familiar with the matter said that Daimler is in talks with BAIC New Energy, a subsidiary of BAIC Group, to form a new joint venture, but it is not clear what stake Daimler wants in the joint venture.

A Daimler spokesman declined to comment but added that close cooperation with BAIC and BAIC New Energy "has further deepened its understanding of Chinese customer needs, especially in the field of new energy vehicles." BAIC and BAIC New Energy did not immediately comment.

Previously, Daimler strengthened its relationship with BAIC New Energy. In March this year, Daimler Greater China Investment Co., Ltd. acquired 3.93% of the shares of Beijing New Energy Automobile Co., Ltd., a subsidiary of BAIC Group, for a total price of 630 million yuan.

As part of smart's electrification transformation strategy, Daimler recently adjusted smart's top management. Annette Winkler, global CEO of smart brand, will leave on September 30. Karen Adt, Daimler's vice president of human resources, will replace Annette Winkler as global CEO of smart brand to accelerate the brand's electrification transformation.

Mercedes-Benz plans to electrify its entire product line by 2022, and its sub-brand smart is obviously the pioneer of electrification. Mercedes-Benz plans to provide pure electric or hybrid versions of all its models in the next four years, and smart is also the first brand to fully transform from fuel vehicles to electric vehicles.

Similarly, BMW's MINI brand is also turning to electrification, and is in talks with Great Wall to build a joint venture to actively explore China, the world's largest market.

BAIC Group Chairman Xu Heyi said in an interview in June that the company would soon announce a new partnership to produce premium electric vehicles in China.

As a winner of Toutiao's Qingyun Plan and Baijiahao's Bai+ Plan, the 2019 Baidu Digital Author of the Year, the Baijiahao's Most Popular Author in the Technology Field, the 2019 Sogou Technology and Culture Author, and the 2021 Baijiahao Quarterly Influential Creator, he has won many awards, including the 2013 Sohu Best Industry Media Person, the 2015 China New Media Entrepreneurship Competition Beijing Third Place, the 2015 Guangmang Experience Award, the 2015 China New Media Entrepreneurship Competition Finals Third Place, and the 2018 Baidu Dynamic Annual Powerful Celebrity.