Chinese carmaker Geely is in talks with Germany’s Daimler AG over a possible joint-venture to tackle emerging submarkets in China’s auto industry, sources told Bloomberg.
The 50-50 deal would focus on creating mobility services – ride-sharing and chauffeur services that have been dominated by Didi Chuxing. Disruptive technologies and a shift towards sharing over car ownership are creating a shake-up in the world’s largest auto market, forcing players like Geely to enter new businesses to stay competitive.
Whereas Zhejiang-based Geely has had little exposure so far to mobility services, Daimler has had some success with its ride-pooling services ViaVan, MyTaxi and Car2Go.
Geely has demonstrated an appetite for foreign cooperation and acquisition in recent years. In addition to a surprise bid for 10% of Daimler earlier this year, since 2010 Geely has bought Volvo, Lotus, and London Black Cabs.
After the stake purchase, Geely CEO Li Shufu said that such investment partnerships have replaced the traditional model of established manufacturers each going it alone as new tech firms enter into the market.