- Mercedes-Benz plans to develop a new global compact EV platform based on Geely's electronic and electrical architecture.
- This move underscores a growing trend among foreign automakers to rely increasingly on China's EV technology.
Mercedes-Benz is shifting the development focus of its new electric vehicle (EV) platform to China and plans to adopt the technical architecture of its Chinese partner Geely Auto (HKG: 0175, OTCMKTS: GELYF), according to a Chinese media report.
Mercedes-Benz will develop a new entry-level EV platform codenamed Phoenix based on Geely's GEEA (Geely Electronic & Electrical Architecture) 4.0 platform, 36Kr reported on Thursday citing sources.
Mercedes-Benz China R&D Center will become the global headquarters for compact vehicle development, independently overseeing the design and development of new compact models, with the Phoenix platform marking the first project for Mercedes-Benz China under this reorganization, the report said.
This marks the first time the 130-year-old German luxury automaker has granted independent development rights for a new vehicle platform to an R&D team outside its German headquarters, the report noted.
The platform is expected to enter mass production by 2030, primarily for building Mercedes-Benz's globally sold compact models including the A-Class, B-Class, and CLA.
The core driver behind this deep technical collaboration is reducing vehicle costs. Mercedes-Benz executives have recently made multiple visits to Geely's R&D center, according to the report.
Internal evaluations and vehicle teardown data both indicate that Geely's vehicle architecture offers significant advantages in cost control — a critical factor for Mercedes-Benz, which needs to improve its profit margins.
This strategic shift by Mercedes-Benz comes as the company faces challenges in the Chinese market, where sales continue to be pressured by competition from domestic premium brands like Nio Inc (NYSE: NIO, HKG: 9866) and Aito.
Last month, 36Kr reported that preliminary supply chain data indicated Mercedes-Benz's projected annual volume for locally produced models in 2026 had fallen below 500,000 units — a figure nearly matching its sales levels in China a decade ago.
Last year, Mercedes-Benz's total sales in China came in at about 550,000 units, marking a significant 19% year-on-year decline. Sales of its all-electric CLA model also remained lackluster during its initial launch phase.
Entrusting the Phoenix platform entirely to its China R&D center — which employs around 2,000 personnel — underscores Mercedes-Benz's intent to fully leverage China's mature EV supply chain.
This move also reflects a broader reshaping of the global automotive landscape. From Volkswagen partnering with Xpeng (NYSE: XPEV, HKG: 9868) to Stellantis investing in Leapmotor (HKG: 9863), foreign brands are accelerating their integration of Chinese technological capabilities.
