(ORDO NEWS) — Representatives of the Chinese automaker Geely have already announced that they are forming an electric vehicle venture with tech giant Baidu.
A press office for Geely Holding Group, which also has separate electric vehicle brands, said Monday that the joint venture with Baidu.com Inc. will focus on smart and connected cars. However, no details were provided about the investment or when the new product could be launched.
Global and Chinese automakers have partnered to share the multi-billion dollar development costs of electric vehicles for China. This was due to certain government criteria related to compliance with sales quotas.
China is the world’s largest technology market, accounting for about half of global sales. The ruling Communist Party has spent billions of dollars on subsidies in an effort to quickly gain a leading position in the industry. This puts the burden on manufacturers, requiring them to take out loans to sell electric vehicles or face fines that have not yet been announced.
The privately held Geely, best known abroad as the owner of Sweden’s Volvo Cars, is one of China’s largest independent car manufacturers. Its brands include Geely, Lynk & Co., Geometry and Polestar, all of which sell electric vehicles. Geely is the largest shareholder in Malaysian Proton and British Lotus.
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