Mercedes Cozies Up to Geely

source: Mercedes

Mercedes is already connected with Chinese automaker Geely in a joint venture for the rebooted Smart brand, as well as purchasing mild hybrid powertrains from Horse (the Renault-Geely joint venture).

Now, if the reports from the Chinese media are true, Mercedes will leverage Geely expertise to develop a new compact EV platform, codenamed Phoenix. Such a move raises some questions about Mercedes’ future low-end strategy. You may recall that, back in 2022, Mercedes announced a plan to focus on profit, not volume, which involved both leveraging high-end sub-brands (AMG, Maybach, G) and reducing their entry-luxury portfolio.

In recent months, Mercedes appears to have done an about-face, reversing plans to drop the A-Class and instead launching a new generation in 2028. Would this vehicle be EV-only, and would it leverage the Phoenix platform? Or is Mercedes going the route of VW and Audi and developing a range of China-only entry-level models off this platform?

With the positive reviews of the new CLA EV, it seems Mercedes has been able to successfully develop a multienergy platform (MMA) that can source a highly competitive electric vehicle, so the role of the Phoenix vehicles in Mercedes’ future portfolio has yet to be clarified. But you can be assured that other luxury brands are watching with interest.

#mercedes #geely #luxury #ev #china #automotive #autoperspectives