Geely to make engines for the next generation Mercedes-Benz A-Class

Hans · Nov 18, 2020 11:41 AM

Geely to make engines for the next generation Mercedes-Benz A-Class 01

Geely, which owns 9.69 percent of Daimler, will build the next generation combustion engines for hybrid Mercedes-Benz vehicles, reports Reuters.

Geely to make engines for the next generation Mercedes-Benz A-Class 02

Reuters say the news was first reported by German business daily Handelsblatt on Tuesday, citing company and industry sources. Most of the engines will be built in China, with the rest in Europe.

Geely to make engines for the next generation Mercedes-Benz A-Class 01

Handelsblatt also said that the new cooperation with Geely also means that Daimler will dial back (but not terminate) its existing cooperation with Renault, which supplies the 1.3-litre turbocharged four-cylinder M282 engine used in the Mercedes-Benz A200 as well as the A220e and A250e plug-in hybrid variants. The same M282 engine is also used in equivalent variants of the B-Class, GLA-Class and CLA-Class models.

Geely to make engines for the next generation Mercedes-Benz A-Class 02

A separate report, also by Reuters, citing a source at Renault said that Daimler’s plan to cooperate with China’s Geely does not mean the end of cooperation between Daimler and Renault.

“The companies plan to develop a highly efficient modular engine,” a spokesman for Daimler told Reuters.

Geely to make engines for the next generation Mercedes-Benz A-Class 03

Prior to this, Daimler is already cooperating with Geely, having established the joint venture “smart Automobile Co., Ltd.” company in January 2020, effectively off-loading half of Daimler’s loss making smart brand to Geely.

Geely to make engines for the next generation Mercedes-Benz A-Class 04

Daimler is in a tight spot now and although its finances are still healthy, it needs to divert a significant portion of its resources to electrifying its future product range. Currently, the company is behind schedule in complying with the European Union’s upcoming 2021 fleet-wide average CO2 emissions reduction target.

Geely to make engines for the next generation Mercedes-Benz A-Class 05

Source: PA Consulting

The company needs to pay an estimated 1 billion Euros in fines next year if it can’t bring its fleet-wide average CO2 emission from the current projected figure of 114 g/km to 103.1 g/km.

Geely to make engines for the next generation Mercedes-Benz A-Class 06

With most of its R&D resources allocated to powertrain electrification and digitization of its cars, Daimler needs another partner to share the development cost of combustion engines.

Hans

Head of Content

Over 15 years of experience in automotive, from product planning, to market research, to print and digital media. Garages a 6-cylinder manual RWD but buses to work.

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