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Smart brand will be built in China as a Daimler-Geely joint

FRANKFURT/BEIJING — Daimler will build its next generation of Smart electric cars in China through a joint venture with Geely, as a way to increase economies of scale in a market segment that is struggling to turn a profit. China's Geely built a stake of almost 10 percent in Daimler last year, saying it wanted to forge an alliance to develop electric and self-driving cars to better compete against new challengers such as Uber and Google. Daimler said on Thursday it would build the next generation of Smart-branded city cars at a purpose-built factory in China, and planned to share its expertise in manufacturing, engineering and design with Geely. The high cost of electric car batteries has made it hard for automakers to build affordable zero-emissions vehicles, leading several of them to strike alliances with Chinese partners. Daimler's German rival BMW recently unveiled plans to build electric Minis in China, where production costs are low and demand for small electric cars is rising. Daimler and Geely did not disclose financial terms of their deal. The details of the joint venture will be finalized by the end of 2019, they said in a joint press release. Daimler currently develops and builds Smart cars with Renault at factories in France and Slovenia. The Daimler factory in Hambach, France, will be retooled to build Mercedes-Benz cars. Geely has been expanding rapidly through mergers and acquisitions since 2010, when it acquired Swedish carmaker Volvo from Ford. Last year, Daimler and Geely set up a ride-hailing joint venture in China. Daimler's Chief Executive Dieter Zetsche said last month the German carmaker was in talks to deepen its alliance with Geely after the Chinese's group's chairman Li Shufu bought a 9.69 percent stake in Daimler in 2018.

Mercedes-Benz previews its curvy sports-car and design future

Suggesting creases are passe for automotive design, Mercedes showed off ideas for its future styling directions this week at a forum in Germany, including previews of upcoming sports cars and sedans. We see images of a curvy sports car study (the silver car) with huge wheel arches flared out almost like pontoons. There's also what appears to be a rear-engine hypercar (white car); we've been reading reports about it for months. Additionally, there's a red sporty saloon, as Mercedes calls it, also among the photos. It features prominent rounded fenders and a bold horizontal grille. Mercedes also previewed its upcoming A-Class, in what it calls the Aesthetics A sculpture, which looks like a car covered in a red sheet. Though Mercedes says this is its next step to a purer design, creases and strong lines are still evident on the sides. Related Video:

Mercedes could make EV batteries with Audi, BMW

It's not a big leap from digital maps to batteries, it turns out.The head of Mercedes-Benz parent Daimler said recently that he envisions his company working together with German automotive competitors BMW and Volkswagen to further accelerate electric-vehicle battery technology. The three automakers recently worked together to enhance their in-car maps systems. Daimler CEO Dieter Zetsche talked about "commonalities" between automakers, not the least of which is the need for all of them to achieve increasingly stringent fuel-economy requirements in the European Union, at the Frankfurt Auto Show last week, according to Reuters. While these companies have made their own inroads as far as plug-in vehicles go, they are all behind the Renault-Nissan Alliance when it comes to public deployment of electric vehicles. This summer, Daimler, Audi and BMW hooked up to acquire the Nokia Here digital-mapping service for about $2.8 billion. The triad of automakers beat out companies such as Apple and Uber to buy the entity, which was founded in 1986 as Navteq. Nokia bought the company in 2007. The acquisition makes sense as the automakers work on improving their products with features like cloud-based data to warn drivers of icy roads and traffic jams. The technology will likely also eventually be used in autonomous vehicles. Automakers working together for a common goal of improved technology is nothing new, of course. General Motors and Honda agreed in 2013 to work together to accelerate hydrogen fuel-cell drivetrain development. Earlier that same year, Daimler said it would work with Ford and Nissan in a separate collaboration to speed up the development of hydrogen fuel-cell technology. Related Video: