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German luxury automaker Mercedes‑Benz has held preliminary discussions with China’s Geely Automobile about expanding their cooperation beyond current ventures, according to a Bloomberg report quoting unidentified sources.

The talks focus on strengthening vehicle development in China, currently Mercedes‑Benz’s largest market. Reuters has not independently verified the report, and Mercedes‑Benz offered no immediate comment.

What the Cooperation Could Entail

Industry reports from Chinese outlets suggest Mercedes‑Benz may leverage Geely’s electronic-electrical architecture, known as GEEA 4.0, to develop a new compact EV platform, internally codenamed “Phoenix.” This architecture forms the backbone of vehicle systems such as intelligent cockpits, connectivity modules and advanced driver assistance tech.

Production of vehicles on this platform could target a 2030 timeline, replacing the current MMA architecture for compact models such as the A‑Class, B‑Class, GLA, GLB and CLA.

Strategic Context and Existing Ties

Mercedes‑Benz and Geely already collaborate through their Smart Automobile joint venture , producing all‑electric vehicles for China and global markets. Earlier cooperation has included joint powertrain development; for example, Geely co‑developed a 1.5‑liter turbo engine used in the Mercedes CLA 220 hybrid.

Read More: Establishment of Mercedes and Geely’s joint venture

This cooperation between Mercedes-Benz and Geely comes at a critical time when Pakistan is at the crossroads of adopting EV technology. The government has already begun incentivizing EV manufacturers with tax reductions and subsidies, setting the stage for a greener automotive future. If this cooperation leads to affordable luxury EVs, it could create new opportunities for local buyers and bring international tech standards to the Pakistani market.

Read More: National Electric Vehicle Policy 2025-30 Launched in Pakistan

At this stage, talks remain early and exploratory, with no official confirmation or detailed roadmap announced by either automaker. Industry watchers will be watching for formal statements, potential memoranda of understanding, and specifics on technology sharing or equity commitments in the coming months.

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