The revolution in the EV market enables various automakers to stretch themselves out of their comfort zone. , As reported by one of the sources German automaker Mercedes-Benz may be looking for an electric tech partnership in China. The automaker is under discussion for a competitive EV tech partnership with NIO.
One of the reports from Reuters stated that the sources who have been aware of the matter revealed the information. Further, claiming that the automakers have had “exploratory talks,” whereby Mercedes-Benz would invest in Chinese EV maker NIO. This is by having the intention to access Chinese technology.
Notably, William Li, NIO’s founder, and Mercedes-Benz CEO Ola Kaellenius have undergone a discussion of a potential partnership at the start of this year. At the same time, NIO seeking to improve its financial situation. Therefore, this partnership could benefit from sharing tech along with resources with expert EV makers.
However, it is not known how technology will be exchanged and what will be its cost. One source said that NIO was the one that approached Mercedes but faced resistance from internal discussions within the German automaker. While it was “highly likely it would not proceed.”
On the other hand, NIO refused the claims saying it was “untrue.” While Mercedes stated that there were no current plans for the merger. They stated, “Ola Kaellenius is in an ongoing regular dialogue with various industry leaders and peers, including William Li.”
Rumors about Mercedes-Benz, NIO EV tech partnership
Besides, the source claimed, that Mercedes’ R&D and strategy teams majorly denied the partnership. As per them, it could hamper the brand image. Meanwhile, there also be a collision in the interest with Chinese investors. It comprises the BAIC Group and Li Shufu, they are the two biggest Mercedes shareholders.
The German automaker intended to speed up EV sales in China, in order to improve the market share. Also, the NIO has come in ninth place among EV and hybrid automakers in China. The company aims to build in-house components like batteries and chips.
NIO’s losses touched $835.1 million in Q2, which is up approx 120% from last year. While, the increase in losses comes into effect after an ongoing price war in China, due to which NIO deducts prices in June.
