Mercedes-Benz is in early talks with Geely Holding to expand cooperation on next-generation EV development, aiming to cut costs and accelerate electrification amid intensifying competition in China, its largest market. Domestic EV brands have gained ground through lower costs and faster innovation, while Mercedes has faced weak sales and high development expenses. A deeper partnership would leverage Geely’s platforms and engineering capabilities, building on their existing Smart brand collaboration — where Mercedes leads design and Geely handles production.

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