Engine production at Mercedes
The DAX group Daimler and its Chinese shareholder Geely want to leverage synergies in production.
(Photo: dpa)
Munich, Frankfurt When Geely founder Li Shufu spectacularly secured almost ten percent of the shares in Daimler at the beginning of 2018, the reservations in Stuttgart were great. The new major shareholder from the Far East appeared to many managers and supervisory boards of the Mercedes manufacturer like a troublemaker with unclear intentions.
In the meantime, however, Li himself has received high praise from Daimler boss Ola Källenius: “This is a new and very good partner with whom we are, for example, further developing the Smart”, said Källenius recently at the Auto Summit of the Handelsblatt and presented other cooperation projects with Geely in prospect: “I see potential for more.”
It is now clear what this deepened alliance will look like: The two vehicle manufacturers will jointly produce hundreds of thousands of gasoline engines per year from 2024, the Handelsblatt learned from corporate and industry circles.
The development authority for the units, which can be operated with e-fuels or green hydrogen in addition to gasoline, rests with Daimler. Geely takes over the production in China with its cost-effective structures. In Europe, Mercedes could take over production itself.
The goal is annual cost savings in the three-digit million range. Daimler confirms the plans: “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.”
However, the pact with the Chinese is causing displeasure among workers. This lost the chance to get more jobs in Germany, it was said in trade union circles. And another loser is emerging: Renault, Daimler’s previous engine partner.
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