While in Europe the possible agreement between Stellantis and some Chinese brands to promote the colonization of the latter in the Old Continent (an agreement already denied by the Italofrench manufacturer) is making headlines, in China the German carmakers, the first to colonize the Asian country when it was still industrially virgin, continue to strike deals with local rivals who have quickly cornered them. In this sense, Mercedes-Benz Group’s decision to start talks for a possible cooperation with Geely fits in.
WHY MERCEDES IS INTERESTED IN GEELY
According to sources close to the matter, preliminary discussions are focusing on a partnership that would concern models following the current generation of Mercedes electric vehicles: the Germans believe that with Geely’s know-how development times and engineering costs would be reduced.
During 2025 the three-pointed star suffered a revenue drop of 10.5% (down to 96.4 billion) due not only to tariffs and unfavorable exchange rates but also and above all to the slowdown in sales in China where the audience no longer turns to foreign brands preferring domestic ones even in the premium segment. While globally registrations slowed by 9.2 percent, in the Dragon Country Mercedes-Benz’s decline nearly reached 20 percentage points (precisely 19 percent).
GERMANS HUNTING FOR CHINESE KNOW-HOW
Volkswagen, which felt the same growing indifference from the local user base, has forged a collaboration with Xpeng, also through platform sharing, thus giving shape to its “in China for China” plan. And Mercedes intends to follow suit by adding to the already existing partnership with the state group Beijing Automotive Group (with billionaire Li Shufu, founder of Geely, among the main shareholders) other carmakers. With the paradox that while for 40 years foreign carmakers wishing to operate in China to maximize profits were forced by the government to open joint ventures with local partners to whom they had to transfer their know-how, now that this rule has been abolished the opposite is happening more and more.
